Hi Benjamin! “Hard Money” is just the common name for a “construction loan” or a “rehab loan”. Basically, it’s a short term loan that is typically used for rehab projects. The qualifications are usually based more on the equity and the project itself than on the borrower’s FICO scores or W2’s. The rate and fees are higher than a traditional bank loan, but the convenience of speed and availability make it very useful to investors. We talk about this and other types of financing on Episode 11. Hope this helps!
Can you define the term “hard money?”
Hi Benjamin! “Hard Money” is just the common name for a “construction loan” or a “rehab loan”. Basically, it’s a short term loan that is typically used for rehab projects. The qualifications are usually based more on the equity and the project itself than on the borrower’s FICO scores or W2’s. The rate and fees are higher than a traditional bank loan, but the convenience of speed and availability make it very useful to investors. We talk about this and other types of financing on Episode 11. Hope this helps!