Tim David

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Rainer
360,317
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Hard money loans are short term band-aids. If owner plans to sell in seven months but is in default with tons of equity paying 13% and many points might be a short but exorbitantly expensive fix.

If a buyer cannot qualify for a NonQM or conventional loan they need to have in place the major repair of their credit/income/disaster ready to refinance in a year.

Check all options. Have an exit plan.

Nov 17, 2022 12:16 PM
Rainmaker
3,395,344
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Hard money is best for buy, fix and sell. I do not think it is geared toward any property you want to hold or even live in as you are paying away your equity in high points and interest rates

Nov 17, 2022 01:10 PM
Rainmaker
2,702,045
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

If one is "hard-up" for funds...hard money offers a solution, but it is not for everyone. It is expensive and is usually secured by the entire asset. We once made a hard money loan to a guy who needed it badly and put up two properties as security. We also charged a ridiculous amount of points & a high interest rate. He was not deterred! Why? He had managed to purchase a lucrative gas station/market/fast food site, the only one of its kind within miles in either direction which could not lose money period thus whatever it cost him to get "there" was of no importance. I also remember him saying no one else would make the loan. He paid on time and then paid off the entire loan as agreed. He had the vision & cashed in

Nov 17, 2022 12:08 PM