Hard money loans

I was wondering if there is anyone that could tell me about hard money loans. How they work , the up and down side to the and any risk I should be aware of?

Hey there, The up from this decision is that they can finance up to 100% The downside is that they charge hefty amounts interest.

They will rarely fund 100%…more like 65%-70% of ARV (this may turn out to be 100% of purchase)…

Here is some info straight from the Investing Glossary to your left:

Hard Money Loan - A loan that is underwritten with the condition and value of the property as the primary criteria for approval. Secondary issues may include the credit of the borrower, the ability of the borrower to repay the loan and/or the ability of the borrower to manage the property or successfully complete a rehab and sell the property. Owner occupancy, debt ratios and other issues are seldom a factor. Appraisals rather than purchase prices are used to determine value. Cash out purchases are often allowed and are another key benefit. These loans are usually approved within days and are often funded in two weeks or under with times as short as two or three days not uncommon. The cost for the benefits of speed of funding, lax underwriting and other advantages is typically a moderately high interest rate (usually low to mid teens) and high points (usually 5 to 10).


I appologize… I meant to say it can be 100% of the purchase price.

I know someone that will offer a 100%, I got approved for up 215k with 8% interest rate and will give me funds for rehab , for example

Purchase Price 115
Rehab Cost 15k
ARV 150k

They will loan 150k as long as they can have estimates and surveys in the loan file then they will use the ARV to get the loan.

*ZERO points up front

  • ZERO in the back
  • ZERO junk fees
  • PRIME OR SUB-PRIME it just does not matter
  • NO PRE-PAYMENT w.a.c.
  • 100% loan Non-owner occupied w.a.c.

Is that someone you? haha

Interesting 1st post. maybe slow down a bit on the advertising. if I’m wrong I apologize. But that does sound like a great loan. Good luck with the business.

By the way, how will this loan make money? the interest from this loan will not be enough to cover the risk. I sure wouldnt lend this kind of paper.

Charles L. if you can get me a loan like his in PA I will have business for you or your lender every week.

Can you send me some requirements?
Loan min and max
How fast can you close
Can I get a pre-approval
I have several HUD deals that I can purchase under $20k and rehab for $10k and either hold and refinance or flip them for $60k I need help now!!!

Sorry I think you are mistaken… I do not do HML. Maybe someone else will chime in. GOod Luck with everything

sorry that was for Baby_Boy!!! What do you do??

hey mr real deal can you send me over someinformation on that super loan set up

as i have some deals in the works that i could use the funds for send to bsat001@wmconnect.com

Hi mr real deal,
Do the hard money lenders do international loan(singapore)? pls give me some details on this,thanks

real deal-
your guys haven’t replied yet to emails or phones. THat’s bad business and business lost!

hey just wondering has any one heard or recived any response from mr real deal is he the real deal ? why is he not responding ?

know you hate this cliche but …

“when it sounds too good to be true, most likely it is”

Time is money… move on…

I emailed him and got a reply the same day.

Yeah? Did he give you his website? I would be very interested in learning about his program further. I’ve been looking for loan such as he described world over and couldn’t find it so, I would like to know his website and phone number to confirm.

Hurrikane: What is the reply?

I sent him the deal(s) and what I wanted. Responded that it could fly, needed the appraisal.

That’s as far as I have gotten. Gave me a local partner.

May be a referal deal, not sure yet.

haven’t seen a website. Just try his email.

I’ve communicated with him via email this morning and learned that he is a broker and still no website. I don’t mind paying for anyone who refers a good product or service; however, I need to know if it’s legit. Paranoid? You have to be when you are using other investors money.

I got a name, email and phone number from mr. real deal. I will be calling the contact next week.

I’m on the same page Shama;

I need to correct my earlier statement about mr real deal being a broker. He is not a broker.