Real estate investing is for everyone. Investors from all different types of backgrounds find success in the business and, unlike other potentially lucrative careers, there are very few barriers to entry. The dream of becoming an investor is well within your grasp.
So what are you doing sitting on the sidelines?
We talk to thousands of would-be investors a year and one of the biggest obstacles we see is a lack of self-belief or self-consciousness that prevents people from taking the leap. We're here to tell you that you have what it takes, its just a matter of putting your head down and doing the work. And when you're ready, The Hard Money Co. will be there to provide the financing.
Who Can Get a Hard Money Loan?
In much the same way that anyone can become a real estate investor, anyone can get a loan through The Hard Money Co. In fact, one of the primary benefits of hard money is its accessibility to investors who traditional financial institutions have denied. So whether you've tried and failed at the bank, or you are looking to jumpstart your investment with a partner that knows investing, The Hard Money Co. is here and ready to work.
While it's true that anyone can get a hard money loan, there may be some steps you need to take to reach that point. Outlined below are the basic qualifications that are required for funding; qualifications that can be met in an afternoon.
Real Estate Investors
We only lend to real estate investors. This doesn't prevent any individual person from getting a loan from The Hard Money Co., but it does prevent them from using it for reasons outside of investment. The reasons for this are many. First, as real estate investors ourselves we look at potential investments by the numbers. Personal residences, family homes, and other uses complicate this. Our borrowers typically pay back the loan amount via sale or refinance of the property, which is directly complicated when the borrower is actively living there. Personal residences also add a layer of legal complexity that we would rather avoid.
We also need to emphasize the 'real estate' in real estate investor. Many entrepreneurs reach out to us to help with financing their business ventures and, while we admire their hustle, it doesn't align with our expertise. We don't have the ability to assess their businesses in a meaningful way and can't bring the value of our partnership to the table. So if you are a real estate investor investing in properties that aren't your home, start your application today.
People with Good Deals and Good Strategies
The easiest loans we will ever write are to borrowers who bring good properties to the table and have solid, proven, investment strategies to back them up. We have repeat borrowers who have their process nailed down and can count on their loan being written as soon as they hit submit on the application.
So what does a good deal look like? As an asset-based lender, we base all of our funding figures on the after repair value of a property (ARV) or what a property will be worth when all the work has been completed. Investors acquire property at below-market rates and renovate the asset before bringing it to market by sale, or rent/refinance. A good deal is one in which the gap between the purchase price and ARV is as wide as possible allowing for repair funds and a significant profit margin at the end.
Other components of good deals include a tried and true investing strategy. These can include simple ones such as a fix and flip, or you can get more complex with the BRRRR Method or a Short-Term Rental strategy. No matter your vision, make sure you've done the up-front strategy planning that you can communicate to your loan originator.
Entrepreneurs and Hustlers
Though we've left this criterion last, it's likely our most important. Our best borrowers are the ones who have that deep-seated drive to be successful. They've chosen real estate, but they would be successful in any entrepreneurial endeavor they might pursue. They are organized, hard-working, visionary, and won't take no for an answer.
I know that this describes many of you who are reading this right now. I also know that some of you might be wondering if that description really applies to you. The truth is that it does. No matter what you've done in the past, you can embrace that drive and motivation to become the person you want to be.
Who Can't Get a Hard Money Loan
Nobody is automatically disqualified from getting a hard money loan. We don't run credit checks, we don't perform income or asset verification, and we don't check your experience in real estate investing. There are no barriers to financing that can't be overcome with honest, transparent, communication and a good deal. So if you're ready to take the leap, trust yourself, and take the leap towards becoming a real estate investor, submit your application with The Hard Money Co. today.