How to Vet Your Hard Money Lender
Clear communication is essential for a successful real estate investment. Managing timelines, expectations, financing, and more requires clarity and precision to ensure a streamlined and profitable project.
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Clear communication is essential for a successful real estate investment. Managing timelines, expectations, financing, and more requires clarity and precision to ensure a streamlined and profitable project.
At The Hard Money Co., we have investors that submit applications once a month and have never funded a loan. They have the drive, they have the ability, but what they don’t have is the deal. So, what’s the hold up? For most of them, they’ve put in the work to put their strategy together.
Most people avoid using certain four-letter words, but in the world of real estate investing, there’s a three-letter word that’s even worse: tax. The reality is that as long as you are generating profit in the real estate game, there will be someone from the state and federal governments who wants to take your cut.
Investing in real estate can be enticing for many, offering the potential for substantial earnings, the freedom to work independently, and the ability to solve complex problems—qualities that appeal to those with an entrepreneurial spirit.
Interest rates have hit extreme lows and then peaked to extreme highs. Additionally, the recent housing market was one of the most competitive in memory, characterized by first-time homebuyers with considerable financial resources trying to outbid each other. This demand was unprecedented.
Identifying properties with the largest delta between purchase price and After Repair Value (ARV) is crucial in determining whether a real estate investor will ultimately succeed. However, it’s not always easy.
We’ve seen thousands of would-be real estate investors at The Hard Money Co., each arriving with a dream of building lasting, generational wealth through real estate. But how many of them do you think have stayed true to that dream and are still actively investing today? Unsurprisingly, it’s not 100% of them.
Real estate investors come in all shapes and sizes. They invest in residential homes, commercial properties, rental units, and fix-and-flip projects at all different investment levels. If you were asked to pick investors out of a lineup based on superficial looks alone, you wouldn’t be able to do it. But behind all of these differences are some core characteristics that define what it means to be a real estate investor.
Scott Lurie recently shared his insights on using private money for real estate investing with over 100 investors. If you missed the live session, now’s your chance to catch up.
Real estate investing might seem like a world reserved for the experts with cash to spend and years of experience, but the truth is, it’s open to everyone. Whether you’re just starting out, don’t have a degree, or aren’t sitting on a pile of cash, there’s a place for you in the real estate market. But just because the door is open doesn’t mean walking through it is easy.