20 min
Ep. 124 - Hard Money Loans - Where to Find the Capital to Get your First Investment Property The Art of Winning
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- Entrepreneurship
Hard money loans are a popular financing option for real estate investors who need funding fast. This episode dives into the details of hard money loans – from managing interest rates to how they can help aspiring real estate investors. Learn how these loans work, the types of borrowers they are best suited for, and what to look out for when applying.
Ashton explains the importance of having an exit strategy in place before taking out a loan and what resources are available for furthering one's knowledge on investing in real estate. He also introduces Valkere Investment Group’s free resources such as their investor club, blog, e-book and monthly virtual meetup - providing a comprehensive overview of wealth building and investment strategies. Join us to learn more about hard money loans and real estate investing!
Get access to the Vacation Rental Millionaire Method here!
[00:00 – 09:36] The Benefits of Hard Money Loans for Real Estate Investors
Private lenders and hard money lenders can provide capital to aspiring real estate investors. Hard money loans are asset-based and are primarily used for real estate investments. Loan amount is determined by the purchase price of the property, not necessarily its value. Poor credit history is not a deal breaker for this type of loan.
[09:37 – 12:30] The Approval Process of Hard Money Loans
Loan application includes details about the property and investment plan. The property appraiser assesses the property's value to ensure it aligns with the loan amount requested. Hard money loans provide funds for real estate investments, typically 70% of the after repair value plus a percentage of the rehab value. Borrowers need to have a clear repayment plan in place such as selling the property or cash out refinancing.
[12:31 – 20:07] Understanding Hard Money Loans: Interest Rates, Risks, and Approval Process
Interest rates range from 8 to 15%, with points and origination fees depending on the lender. Approval process can be as quick as a few days, making hard money loans suitable for time sensitive investments. Hard money loans offer speed and flexibility, but come with risks. It is important to have a well thought out investment strategy and exit plan to maximize benefits of these loans.
Connect with Ashton!
Website: Valkere Investment Group
LinkedIn: Valkere Investment Group
Want to learn more about creating multiple income streams, wealth protection, financial freedom, or real estate investing? Join our investor club, check out our blog, get our NEW ebook on investing, or join us for our monthly Real Estate Investing Made Simple virtual meetup. Take the first to your wins in life and head on to http://www.valkeregroup.com.
Leave a REVIEW and SHARE this episode with someone who wants to unlock the secrets to success. Listen to other episodes on Apple, Spotify, Libsyn, or wherever you get your podcasts!
Key Quotes
“Credit history isn't a deal breaker here [in getting a hard money loan]. So even if your credit score isn't perfect, you can still secure a hard money loan based on the property's value or the property's after repair value.” – Ashton Levarek
“Hard money loans are primarily asset based. Your credit score is less of a concern for the lender.They're more concerned with the value of the property and of course the exit strategy." – Ashton Levarek
Hard money loans are a popular financing option for real estate investors who need funding fast. This episode dives into the details of hard money loans – from managing interest rates to how they can help aspiring real estate investors. Learn how these loans work, the types of borrowers they are best suited for, and what to look out for when applying.
Ashton explains the importance of having an exit strategy in place before taking out a loan and what resources are available for furthering one's knowledge on investing in real estate. He also introduces Valkere Investment Group’s free resources such as their investor club, blog, e-book and monthly virtual meetup - providing a comprehensive overview of wealth building and investment strategies. Join us to learn more about hard money loans and real estate investing!
Get access to the Vacation Rental Millionaire Method here!
[00:00 – 09:36] The Benefits of Hard Money Loans for Real Estate Investors
Private lenders and hard money lenders can provide capital to aspiring real estate investors. Hard money loans are asset-based and are primarily used for real estate investments. Loan amount is determined by the purchase price of the property, not necessarily its value. Poor credit history is not a deal breaker for this type of loan.
[09:37 – 12:30] The Approval Process of Hard Money Loans
Loan application includes details about the property and investment plan. The property appraiser assesses the property's value to ensure it aligns with the loan amount requested. Hard money loans provide funds for real estate investments, typically 70% of the after repair value plus a percentage of the rehab value. Borrowers need to have a clear repayment plan in place such as selling the property or cash out refinancing.
[12:31 – 20:07] Understanding Hard Money Loans: Interest Rates, Risks, and Approval Process
Interest rates range from 8 to 15%, with points and origination fees depending on the lender. Approval process can be as quick as a few days, making hard money loans suitable for time sensitive investments. Hard money loans offer speed and flexibility, but come with risks. It is important to have a well thought out investment strategy and exit plan to maximize benefits of these loans.
Connect with Ashton!
Website: Valkere Investment Group
LinkedIn: Valkere Investment Group
Want to learn more about creating multiple income streams, wealth protection, financial freedom, or real estate investing? Join our investor club, check out our blog, get our NEW ebook on investing, or join us for our monthly Real Estate Investing Made Simple virtual meetup. Take the first to your wins in life and head on to http://www.valkeregroup.com.
Leave a REVIEW and SHARE this episode with someone who wants to unlock the secrets to success. Listen to other episodes on Apple, Spotify, Libsyn, or wherever you get your podcasts!
Key Quotes
“Credit history isn't a deal breaker here [in getting a hard money loan]. So even if your credit score isn't perfect, you can still secure a hard money loan based on the property's value or the property's after repair value.” – Ashton Levarek
“Hard money loans are primarily asset based. Your credit score is less of a concern for the lender.They're more concerned with the value of the property and of course the exit strategy." – Ashton Levarek
20 min