FREQUENTLY ASKED QUESTIONS
What are hard money loans?
A hard money loan is a short-term loan, sometimes called a bridge loan. It is not meant for those looking for mortgage loans to buy a home to live in. Rather, these loans are primarily made to real estate investing firms and individuals who flip houses.
What do you need to qualify for a hard money loan?
Very little. With a hard money loan, the property you are purchasing is used as collateral for the loan. Therefore, your creditworthiness is not as important. Do Hard Money will not ask you for tax returns, pay stubs, or most any other personal financial documents. Other lenders require prior experience and a minimum credit score — but not us.
Where do you get a hard money loan?
Banks and traditional lenders do not deal in hard money lending. Hard money loans are only made through private companies and individuals. That’s because a hard money loan is risky, and traditional banks must answer to a board of directors and stockholders. They can’t take chances.
How long does it take to get a hard money loan?
Getting a hard money loan is traditionally much faster than getting a traditional loan from a bank. That’s because the lender does not have to verify all your financial information. With Do Hard Money, you can get a hard money loan in an average of 12 days.
Do I need to have a down payment to get a hard money loan?
Not necessarily. Many hard money lenders require 20% to 30% down for hard money loans, but at Do Hard Money, you can get a no-money-down loan. Not every deal qualifies, but if you are accepted into our Find-Fund-Flip System, we’ll teach you to find the types of deals that qualify. That’s because with our system, we don’t simply lend you the money, we also coach you in how to find good properties and how to rehab and resell them quickly. This makes you less of a risk and more worthy of 100% financing. In the past 12 months, 37% of our loans were 100% financed, with average cash-to-close of just over $2,000 across all deals.
What are the advantages of getting a hard money loan?
Getting a traditional mortgage from a bank to rehab a property is difficult because banks don’t want to lend money to homebuyers who are not going to live in the home. Banks that lend this money do so at a higher interest rate, and approval takes so long that you often miss out on the sale. With a hard money loan, you get your cash quickly — within days, regardless of your credit score. Sometimes a hard cash loan is the only avenue available for purchasing an investment property.
What makes Do Hard Money different?
A lot of hard money lenders do not involve themselves in your projects — they are simply lenders. At Do Hard Money, we believe that we make more money if our borrowers make good investments and good choices regarding rehabs, so we help them learn the ropes. With our Find-Fund-Flip System, we provide you with software to help you find and market to off-market property owners, training for every step, and even provide a former general contractor to guide you through the rehab.