How does hard money work with fix and flips and rental properties?

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More information on hard money here: http://investfourmore.com/2015/08/how-to-find-a-nationwide-hard-money-lender/

Hard money is expensive, but it can be a great option for flipping homes or buying rentals with little money down. It is not easy to find financing for flips, because most banks do not like to lend money for less than one year. Most flips take less than a year and you have to find special financing to fund flips. Hard money is one option, but can cost 2 to 5 points and have over 10 percent interest.

6 COMMENTS

  1. Just to clarify, after receiving the 100k from the Hard Money Lender and putting in your own 10k, so 110k is what is into the property. Say that a lender allows you to do the cash our refinance for a new loan of 150k, will you also have to have the 20% down payment in cash up front and on hand or will they be able to roll that that 20% downpayment out of the cash you are receiving from the refinance?

  2. Do hard money lenders qualify a borrower looking to refinance on an investment property with no existing mortgage on only the LTV? I'm looking to obtain a loan that would be a 30% LTV on an investment property in So Cal.

  3. I have 5000 saved for a house. I'm a student and work part time. Also I have a roommate who will move in with me but the bank told me they won't count that as income.

    They also said I have to work full time to get a loan. What should I do?

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