What is a Hard Money Lender?
Here is a great tip for first-time investors. What is a hard money lender? A hard money lender is a lender that specializes in loaning out "hard money" on investment deals, these can be fix and flip properties, rental properties, and even sometimes (if you know what your doing) wholesale properties. Many people assume you need all cash to start buying and flipping or renting out houses, but that is not the case if you can get qualified through a hard money lender. Some hard money lenders can lend you money if you've got as little as 13% of the home purchase price in reserves. They will typically require you to put that money towards the purchase price on the home, and can lend you the rest. But, they only loan on investment properties! They are looking for a quick return on the money they lend, and often have very high interest rates.
Of course, different lending companies have different requirements for what they are looking for in qualifying investors to lend money to, so I always recommend, as with any lender or other vendor you will be using, that you shop around and find the company with the best rates and qualification terms for you. Each person is different and is looking for different conditions that best match their own needs, and you need to find the hard money lender that fits your specific situation, as with a regular home loan on a property you are looking to purchase for yourself.