EVERYTHING to Know about Hard Money - Why Use Hard Money, How to Qualify, How Much It Costs
Vložit
- čas přidán 5. 06. 2020
- EVERYTHING to Know about Hard Money - Why Use Hard Money, How to Qualify, How Much It Costs
This video is a beginner's guide to hard money. Learning how hard money loans work is the 1st step to a successful house flipping career. Many people ask me why use hard money to fund flips instead of a conventional mortgage. Hard money is a lot more expensive than conventional mortgage, but it has its advantages when it comes to flip houses with hard money. This video explains the difference between hard money loans and conventional mortgages, and why use hard money to flip houses. I will also tell you how you can qualify and how to get hard money to fund your flips. Lastly, the video shows you how much does hard money cost with an example, and explains how much money you need in the bank in order to close on the purchase of a flip. Once you finish watching this video, you'll have all the answers you need about how hard money works and you'll feel more comfortable to flip houses with hard money.
This video tells you everything you need to know about hard money with all the hard money basics. If you are a beginner in house flipping, this video is a must watch as it explains what you need to know about hard money.
#hardmoney #hardmoneyloans #realestateeducation
Watch next: How to flip houses with No Money:
• Flip Houses With No Mo...
🔔 SUBSCRIBE for more House Flipping Tips & Strategies:
czcams.com/users/transformrealestate?s...
❤️ SHARE this video with a friend:
• EVERYTHING to Know abo...
✅ RECOMMENDED videos:
- How to flip houses WHILE WORKING FULL TIME:
www.youtube.com/watch?v=AQ6N6...
- 5 Steps to Invest in Real Estate WITHOUT MONEY - $75k Profit in 1 Week!
• 5 Steps to Invest in R...
RESOURCES & LINKS RELATED TO THE VIDEO
Preferred Hard Money Lenders in SF Bay Area:
- Conventus: www.cvlending.com/
- Lending Home: www.lendinghome.com/
- Iron Bridge: ironbridgelending.com/
CONNECT WITH ME ONLINE
IG: transformrealestate
FB: transformrealestate
www.transformrealestate.com/
Check out the House Flipping for Beginners Playlist:
czcams.com/play/PLth4sDjOXnLXR2wUFLQkwd67Wuxx9lKRG.html
great video! could you do a tips and tricks video on the taxes side things once you’ve successfully profited from a flip. 🙏🏽
Thanks! I'm not a CPA, so it will be more challenging. But I can share some tips that I've learned to help save on taxes.
Transform Real Estate that would be perfect!
Sounds good. I'll work on it.
I'm Miami realtor and so many shady investors calling me because I know where is the good deals. After your video, I really want to take Hard Money Loan and work by myself. THANK YOU FOR VERY GOOD EXPLANATION!
That's so awesome to hear! I'm so glad my video could help! Good luck!!
Curious...what makes an investor shady? I've always heard this but didn't know any back stories. My mom is 100%against me using one.
Very informative videos. You're so humble and honest! Thanks
Love it. Thank you for the awesome educational video. 🙏
Very informative. Straight to the point. Thanks. Watched it 2x.
Awesome video, great info!
this is THE best video i have actually understood about hard money lending. thank you for sharing!❤
Love your videos!
Very informative!
Very well thought through content! Thank you for making it all so easy to understand!
Thank you Kathy! Glad you liked it. It means a lot :)
Thank you for information blessing year
I've learned a lot. Thank you for the video!
Thank you! Glad to hear that!
Elisa, I really enjoy your videos - which are very educational. Would you recommend a couple of books to read concerning house flipping / real estate investment? I have not flipped a house myself yet but I have worked with contractors and remodeled a couple of houses for someone else before. (I work in property management.) And I am thinking about getting into house flipping in LA soon.
Not to be weird but I love you 😅
What credit card did you get to use as money for the hard money loan. I remember you saying you can use it for 15 years use keep paying it back once your house is sold.?!
When you are buying a house, the first thing the seller's agent typically ask is do you have an approval letter from the mortgage company. So, you get the loan before you go house shopping. With house flipping, do you get the hard money loan first or find the house to flip first? You mentioned in your video the hard money lender wants to know about the deal or house you're looking into buying
You can also work with a lender to get a preapproval first before you make an offer. When you get in contract for the house, your lender will want to evaluate the deal too to make sure there’s enough margin for you to turn a profit.
Hi can you get a hard money loan without any income?
👍🏽
I'm broke 😂 how do I get the money for the rehab reimbursement?
Hello. Let's say I have good FICO score and some money to start flipping but I don't know where to start (not to mention fear), is there a quick course, literature or anything else you would recommend for beginners? I live in LA county. Thanks
Hey Harrynton, feel free to connect with me to go over how the hard money process works. We help a lot of investors like Elisa finance their flip projects!
that is a great video. where do you network and find hard money lenders?
I think I mentioned in the video, you can do a Google search for lenders in your area. Check out this video on networking: czcams.com/video/T60x5BSbI1g/video.html
@@TransformRealEstate thank you! You are amazing
Do hard money lenders also lend against deals intended to be refinanced after rehab (vs flip)?
Are you talking about properties you buy as primary residence or rentals? If you tell your hard money lenders that you intend to flip them for profit, and they meet your lender's criteria, they would fund.
@@TransformRealEstate Got it, thank you. I'm referring to buying distressed property using hard money lender with the intention to keep as a rental after rehab. Sounds like the trick there is to tell them that it's for flips, and if lender criteria on profit margin (as a flip) is met they'll fund. And as long as I can pay them back at the end, I can do whatever I want. Is that roughly right?
@@haiguan9282 Hard money lenders don't necessarily care what your exit strategy is (sell or refinance), as long as their LTVs are met. So it's fine to tell them you'll refinance to pay off their loan. This is what the BRRRR strategy (buy, rehab, rent, refinance, repeat) is all about. They'll also lend on a deal where there is no rehab involved, but you'll typically have to bring in a higher down payment if there is no value-add since the lower down payment comes from the margin spread between the value at purchase and the after repair value.
@@haiguan9282 Hey Hai! We want to know what your exit strategy is because we want to see if your plan makes sense. We don't care what the actual strategy is as long as the loan is for business purposes. i.e. if you tell us that you're looking for a hard money loan to buy and rehab a home that you'll eventually move into as your primary residence, then we probably won't give you the loan. But once you own the property and refinance out of our loan, you're allowed to do whatever you want with it. Let me know if you have more questions!
How do I reach out to you regarding a JV deal I have in Chicago?
Hi! Sorry, I only do business in the Bay Area.
Hello, I thought 90% LTC included the rehab cost. Is that not the case? Also, how do lenders vet the ARV I provide? Do they send a third party appraiser?
Hi, the example I gave is when you only borrow for purchase price. if you are borrowing rehab cost as well, it will be included in the loan amount, and lenders usually use the 70% LTV formula. So Loan Amount = 90% of Purchase Price + 100% Rehab Cost. Value = After Repair Value. Your total loan amount will still have to stay below 70% of ARV, which means in order to borrow rehab cost, your purchase price will have to be lower than if you are only borrowing for the purchase price. Let me know if it makes sense.
Sorry, just saw your other questions. Like I mentioned, the lenders do their own analysis on the ARV the same way we analyze deals as I explained in my video How to Analyze a House Flip. They usually do a BPO - broker price opinion by an agent, not a full on appraisal.
@@TransformRealEstate Thanks for the quick response! That makes sense. So total loan either way is 90% of purchase price of 70% ARV (although % can be negotiated). Do lenders give loan in lump sum (for purchase & rehab), or is rehab usually reimbursed only? And does the borrower pay for the inspection before reimbursement? Thank you!
@@jaepark6378 I don't think the % can be negotiated, but each lender may have their own guidelines. The most generous I've heard is 75% ARV. As mentioned in the video, the rehab loan is reimbursed after the work is done and inspected. Some lenders charge for inspection, I'm not sure if there are lenders that don't charge.
@@TransformRealEstate Thank you so much! Very helpful content :)
Hi,I am 28 years old I am currently trying to get my contract license
I wanna flip houses I have 10,000
I have a handyman business my credit isn’t all that great I have my handyman business since but I am really interested
How do you find investors??
You'll generally need around 20% of the purchase price as the down payment as well as 20% of the rehab costs if you're getting a construction loan. We usually want to see a credit score of at least 620 to give you a loan. If you don't have enough funds for the downpayment, rehab, and interest reserves, or if your credit score isn't high enough, you can join meetup groups to meet local investors to partner with. Elisa and I met through a local meetup a few years ago and partnered on an amazing deal. Good luck!
sounds like Jos. cosmos,million bucks deals,in,mail order, who invented the ant farm.and the future millionaire club, in Hollywood cal, years ago. keep on keeping on!---