Hard Money Terms for Investors
Our primary goal is to cash out when we sell- not be the bank. However, in some situations we can finance your purchase until you can refinance or pay off the balance. By thinking outside the box you can get a great deal without a traditional bank loan.
TERMS FOR HARD MONEY PURCHASE & REHAB
Keeping our hard money as simple as possible both of us can do more transactions to make more money. Here are a few typical terms we can extend to investors to help you buy investment property without a conventional bank loan. The terms listed are for example because every investor and property is different:
The Down Payment
- 15 – 25% of the total purchase price depending on investor experience and credit
For example, at $33,000 15% down is $4950.00
The Monthly Payments
The Length Of Contract
- Six (6) month maximum term. No extensions. Our hard money program is for fix and flips. If you cant get it fixed and flipped and/or refyed in 6 months this program is not an option for you.
- Five (5) points and 21% of the amount being lent minus the down-payment.
Besides the property, other factors come into play such as investment experience. So in order to talk hard numbers with you about we’ll need o know about you and the property. Send info on both here:
INVESTOR GRADE CRITERIA
We will only lend hard money for fix and flips to experience real estate flippers with a proven track record over 50+ documented flips. We may consider funding if you have equity equal to the loan amount needed.
For example the purchase price is $50,000 and it needs 10k in repairs. We lend 60k for a maximum of 6 months at 21% plus 5 points (5 points would equal $3000.00). No extensions.
Question: What happens if I can’t get bank financing after year one?
There is no extension available so if you can not payoff the balloon you loose the property. Because again our goal is to cash out when we sell- not be the bank.
Question: I dont meet the criteria. Now what?
I may consider a joint venture partnership whereby if your real estate deal makes sense I will bring the funds and resources to flip it and we split the profits. Contact me about my joint venture partnership program here.
RESOURCES FOR REAL ESTATE INVESTORS
Plug in to your REIA
Another great resource for finding real estate investments and Seller Financing Terms for real estate deals is your local Real Estate Investors Association™, or REIA (pronounced REE-ya). That is where investors with a love for real estate, a sincere desire for financial freedom, and an optimistic, forward-looking attitude gather to share timely information and ‘what’s working today’ strategies and examples.
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