I am sorry if this is the wrong forum to post this in but I was wondering if anyone could tell me what hard money is and how difficult it is to obtain? Thanks, Michelle
Hard money is private money that is usually brokered thru various hard money lenders. The broker or company usually gets the points which are 5 to 6 depending on the value of the deal. They will loan on fix up deals with lower credit standards. Usually only 70 % of the repaired value. They are also called asset based loans. An escrow account will usually be set uo and you can draw against it as construction is completed. I was just approved yesterday subject to the appraisal and I am currently in a credit mess.
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Hard money is private money that is usually brokered thru various hard money lenders. The broker or company usually gets the points which are 5 to 6 depending on the value of the deal. They will loan on fix up deals with lower credit standards. Usually only 70 % of the repaired value. They are also called asset based loans. An escrow account will usually be set uo and you can draw against it as construction is completed. I was just approved yesterday subject to the appraisal and I am currently in a credit mess.
Hope this helps some
Ted Jr
Thank you very much for explaining hard money for me. I appreciate it.