Creating Real Estate Financing Solutions — Hard Money

Fair warning: you might feel like a mobster with this method. Whether that's good or bad is up to you.

Hard Money:

Rather than being based on your credit score, income, downpayment, and condition of the property, it is based on the strength of the deal. This is music to an investor's ear because it is so synergistic with their goals.

• Short term (3–36 months)
• High interest (8–15 percent)
• Involves a high number of loan points
• Much faster than traditional loans

The interest rates might be higher, but if the deal works, the deal works

***Potential Video/Blog Idea: List of Hard Money Lenders Across Ontario

This is usually a great strategy for flippers because they are going to buy and sell the property in a shorter period of time, and as long as the high-interest rates are accounted for, they will still be able to sell the property for a solid profit.

There is a lack of formalities here, and hard money can be received in a few days. Hard money does not really have rules to it, and everything is up for negotiation between the lender and the borrower.

All the hard money lender cares about is the security of return on investment. Are they going to make money off the deal, and a worthwhile amount of money at that? If so, then they will…