5 THINGS EVERY INVESTOR NEEDS TO KNOW ABOUT HARD MONEY by Elizabeth Hillestad, Civic Financial Services
A ccess to capital is arguably the most important aspect of scaling your real estate business. In today’s shifting mar and solutions for real estate investors, especially when having to pivot your strategy. These loans often provide a more str today’s real estate investor. So let’s dive in and clear up any misconceptions so you know exactly how hard money loans work, the requirements and costs, and when a hard money loan is right for you.
WHAT IS A HARD MONEY LOAN? Hard money loans aren’t called that because they’re hard to get. Simply put, they are generally short-term (6-24 months),
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Conventional mortgages are designed primarily for owner-occupied properties which makes this type of loan a great choice f occupied properties only and are built to solve the barriers in conventional which makes it a great option for real estate investors. HOW TO GET A HARD MONEY LOAN? Conventional mortgage lending assesses debt-to-income ratio, employment history, W-2s and FICO score, and base risk on the creditworthiness of the borrower. The most important criteria for a hard money loan are the property (asset), the borrower’s e Qualifying for a hard money loan requires demonstrating the ability to pay interest on the loan through stated income and assets, which are typically validated by bank statements. Credit scores and investor experience are taken into consideration; ho higher FIC
32 | think realty magazine :: march – april 2023
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