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How to vet private money lenders for real estate investing

Housing Wire

The problem with private money lenders is that good ones are hard to come by. Let’s look at what private money lenders do and how they operate, as well as the potential benefits of using private or hard money loans and how to locate and select a reputable private money lender.

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How to Invest in Real Estate: A 7-Step Beginner’s Guide

The Close

Hard money loan: These loans typically have a short-term period of 18 months or less (but some hard money loans can be as long as three years) and involve a lender or investor giving you money directly. Hard money loans are most commonly used for fix-and-flip loans.

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10 Smart Strategies to Expand Your Real Estate Portfolio in 2025

Marco Santarelli

Utilizing Hard Money Loans Hard money loans are short-term loans that are secured by real estate. Hard money lenders are generally more focused on the property's value and potential than the borrower's credit history.

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How to Buy a Multifamily Property in 10 Steps

The Close

For example, you can get a Federal Housing Administration (FHA) loan and pay a smaller down payment if you purchase a triplex where you plan to live. On the other hand, if you’re purchasing a property that needs renovations, consider taking a hard money loan.

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The Best Hard Money Lenders for 2023 (Interest Rates, LTV, Fees & More)

The Close

In my 28-year career in real estate and investing, I have had to source hard money financing for everything from simple fix-and-flip properties to multi-million-dollar apartment building rehabs. Let’s start with my top picks for hard money lenders. What is a hard money loan? We are here to help!

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How to Buy Multiple Rental Properties With Financing Options

The Close

Check out the different financing types below for more info: Financing Type Best For What It Is Hard Money Loans Fast, short-term financing Short-term (typically up to 12 months), interest-only mortgages. These loans can have rates from 12% to 18% but can be funded in 15 days.

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How to Start a House Flipping Business in 7 Steps

The Close

While you’ll need money to buy properties, most flippers don’t rely solely on their funds. They usually find financing through hard money lenders or loans made just for flipping houses. The borrower qualifications are more lenient but with shorter loan terms and higher interest rates.