Intro to Hard Money Lending

Do Hard Money.com has established a niche of providing short term loans to real estate investors to purchase properties several days after a complete application. This is done through a systematic team that has been fined tuned over many, many years of experience. We provide financing based upon the equity in a property rather than based on the personal circumstance of the individual.

For the past half decade we have established ourselves as the only place to obtain fast cash on real estate transactions. Literally we can have a file closed within 48 hours of the time an application is received in our office.

By doing this we are able to fulfill a huge need while driving a very handsome profit.

THE NEED

Real Estate Agents, Investors, Attorneys, Contractors, Mortgage Brokers and others look for properties that are below value that can be purchased, fixed up and resold or kept for long term rentals. While looking for these below market deals it is important that they deal with cash. These properties are purchased in the following manner:

• Auctions – Properties are auctioned at the county court house on a daily basis. The individuals buying must put $5,000 non refundable down on the property in addition to having the remaining balance in cash within 24 hours of that time.
• Bank REO – REO stands for Real Estate Owned. These properties are properties owned by the bank that the bank needs to dispose of. Any financial institution is required to keep TEN TIMES the amount of the property owned in reserve. This hinders the banks ability to re loan money thus stopping them from deriving profit.
• Short Sale- A short sale takes place when an investor finds a home owner to cooperate with the bank. The investor has to prove a financial hardship; the owner owes more than the home is worth, and qualifies under Fannie Mae and Freddie Mac Guidelines. Then the home will sale for less than owed.
• Estate Sale- When a family inherits a property and sells it to get the money. The homes are typically outdated and sells below retail value.
• Tax Sales – Property taxes are unpaid and the property is auctioned. This will require cash in 24 hours similar to the Bank Auction.
• IRS Sale- The IRS has the right to redeem a property up to 6 months after the foreclosure sale. In doing this the IRS will re auction the property. This will require cash in 24 hours similar to the Bank Auction.
• Probate Sales- A will was not in place when a person died and the estate goes through probate.

• Distressed Sellers- For example, a person lost his job and does not want to destroy his credit but cannot afford the payments either.
• Under Value For Sale By Owner- Owner will sale a property for less than its potential value. Typically the property needs a lot of work or has an unfinished area like a basement.

• Bankruptcy- The house needs to be sold to cover other outstanding debts.
• Higher and Better Use- For example if a property is a duplex and would be more profitable as a single family dwelling. The investor changes the zoning, etc.

The above 11 examples are all situations that with an experienced investor can become a great deal. It is also IMPERATIVE they have cash to close in a very fast manner for two reasons: 1. They need to close before the deal is stolen by another investor and 2. Before the seller changes his mind.

Two ways for our clients to make money. 1. Find a good deal. I have always said that you make money when you buy the property not when you sell it. When you sell you just realize the profit. 2. By improving the property. This may be installing new carpet and paint or a new roof and kitchen. Our investors make money by making the property as valuable as possible.

For our customers to make a profit they have to “Solve a Need” for someone else. This may be the bank that has an audit coming up that has to liquidate a property, or a homeowner that has to sell a home before it gets foreclosed on, or a family that just inherited a home that is in major disrepair. Our customers solve a need and in doing so make a profit by providing cash in a fast manner, or by increasing the value of the property doing repairs or by other means.