The world of real estate investing has become hugely popular in recent years. We see people buying and selling homes and making significant money doing so. A lot of times there are even people in our own lives turning themselves into wealth-building real estate investors. This dream can become a reality, if only we knew how to get started.
Most people's experience in real estate starts and ends with the purchase of their own homes. They work with a realtor to find their dream home and secure their 30-year mortgage at a low-interest rate after weeks of credit checks, income verification, asset valuation, and more. After months of back and forth and an extensive closing process, they finally get the keys to their new house.
This process works because it’s a safe, low-risk proposition. It utilizes what is called 'soft money'.
But this is NOT how real estate investors operate. They need access to quick, liquid money that can get them in and out with profits in hand. People making money in real estate today use 'Hard Money Loans' to get their deals done.
If you're new to this world you need to know the difference between hard money and soft money. More importantly, you need to know which one is right for your investment.