The biggest obstacle that most people face when starting their real estate investing journey is finding reliable financing. When you're at the beginning you likely don't have the cash on hand to buy properties outright, and even if you do, it can be extremely risky to put personal finances on the line for investment opportunities. By that same argument, it may be difficult to convince friends, family, or others in your network to invest in your vision. Even if they trust you and your work ethic, people will be hesitant until you can demonstrate real returns time and time again.
You can also forget about getting funding from traditional lending institutions. Big banks don't lend to people without experience and they hate financing the acquisition of distressed assets. If you can even get in the door, you will be bombarded with so much red tape and bureaucracy, that any chance you have at closing the deal will pass you by.
We recognize that hard money financing isn't for everyone and it's not for every deal, but there are times when it is the best solution to finance your real estate transaction. The Hard Money Co. is here to be your partner and guide and will work with you to be the solution you need when you need it.
Benefits of Hard Money
Hard money has some pretty cut-and-dry benefits relative to other financing options. Our borrowers repeatedly list the following as reasons why they choose The Hard Money Co.:
Fast Closing: We can finance deals in as little as 7-10 business days with the right deals. This means you get to the closing table ahead of your competitors.
No Credit Check: Your credit is of no concern to us. As an asset-based lender, we look at the deal on its own merits.
No Property Appraisal: Hard money finances deals based on the after repair value (ARV). The more distressed an asset, the more opportunity we see in the deal which renders any up-front appraisals useless.
We Are Your Partners: The Hard Money Co. has thousands of deals worth of experience and brings that to each deal we finance. Any questions you have throughout your rehab will be met with answers from our team.
How do I know when to use hard money?
At this point, you're probably well aware of all of the reasons why someone might use hard money. But until you face these circumstances yourself, you might still be asking yourself, "how do I know when to use hard money?"
If you contact us or submit a loan application, we can tell you directly. Until you do, though, the following scenarios should be a good guide.
When a Deal is Urgent
Real estate investing is a competitive industry. Sometimes an opportunity presents itself that is so good, that you just know countless other investors are circling the waters looking to close. If you don't have cash on hand waiting for this opportunity or a network of personal investors that are already convinced, it may be difficult to get the financing in time. The same thing goes for banks. Unless your deal is already in the pipeline, it could be another 45 days before you get their cash and that's only if you're approved.
When time is of the essence, hard money can be your solution. The Hard Money Co. can get you funding in as few as 7-10 days with our typical loan closed inside of 3 weeks. This can put you at an advantage over other investors who rely on other sources.
You can get the ball rolling with us in as little as 15 minutes by filling out our application or reaching out. Our team assesses your application as soon as it hits our inbox and gets to work analyzing your deal. When approved, we guarantee we will match your urgency. If you demonstrate that your financing is priority #1, have your supporting docs in order, and communicate efficiently, we will do everything in our power to close your deal as fast as possible.
If You Don't Have Great Credit or Experience
People start their investing journeys at all different points in their life. For some, they are right out of school and haven't had the chance to prove themselves yet. Other people might not believe in themselves as much as they believe in themselves and they don't have a portfolio of success to back it up.
For others, they may have taken some time to arrive at real estate investing as their calling. We all know the toll that life can take on our credit and finances and how difficult it can be to overcome past mistakes.
Whether you want a second chance or are just looking for your first, The Hard Money Co. can help. As an asset-based lender, we approach every deal based on its merits. If the property presents a good opportunity for investment and the numbers make sense, we WILL cut the check to fund your deal.
Other Financing Options Don't See Your Vision
Forget for a second all of the obstacles we've discussed when it comes to using traditional banks or other people's money (OPM). Even if they were able to lend you the funds you need, many times they won't simply because they don't share your vision. They see a distressed asset and can't imagine how anyone could ever find value in it. Even if you can clearly see how a kitchen remodel and the addition of a bed/bath can add $100k to the purchase price, some people can never look past its current state.
The Hard Money Co. and its employees are real estate investors at our core. We know that opportunity presents itself in the most unexpected places and sometimes the most distressed properties turn out to be the most profitable. We base all of our loans on the after-repair value of a property. Our internal CMA team reviews comparable properties in the area to see what a fully renovated home might sell for. We then use this figure to base our financing. That means that if you have the opportunity to purchase a home for $75k, and similar properties in better condition are selling for $150,000 we will finance the deal. Big banks wouldn't even touch it unless the as-is state is worthy of that $75k valuation.
You're Looking for a Partner
Whether you're just starting out or have a few projects under your belt, everyone is looking for someone to be in their corner. In addition to our funding, we also act as a partner in your project by providing repair funds and ensuring that you hit your target deadlines. Our years of experience get passed on to you and you have the benefit of a partner with thousands of successful deals already completed.
We're available day and night to help you problem solve and get your deal across the finish line. And once you've closed financing, we'll be with you until you've sold or refinanced the property. Even then, we'll be a resource for you when you're ready to take on another project.
Other financing sources can be great, and having the flexibility to use other sources of funding is necessary for building a viable, long-term career. But even the wealthiest, most successful investors will use hard money when the circumstances require it. Keep these scenarios in mind, and when the time is right, reach out to The Hard Money Co. to finance your deal.