Can I Get 100% Financing with Hard Money?

While hard money is flexible, can you really achieve 100% financing with hard money? The answer is yes! The beauty of true hard money is that you can achieve 100% financing for flips. While there are some situations where we can’t do 100% financing, it is possible in most cases. For investors who are doing flips or even BRRRR rentals, they are getting the properties at a discount. This is what makes it possible to cover all of the financing for the property. How can you get a hard money loan to cover the purchase, rehab, and closing costs? Let’s take a closer look!

Who can we help?

Here at Hard Money Mike we can help those who do 20 to 30 properties a month, as well as those who are just starting out in real estate investing! Unlike most large lenders that don’t do 100% financing, we are able to as long as it’s a really good deal. A good deal is one that is all in at 70% to 75% ARV, as well as where the property is at. Just to clarify, ARV stands for after repair value or what you can sell the property for after all of the repairs have been done. 

For example:

If you are going to sell something for $400K, we can lend up to 75% of that ARV. You will need to put the purchase price, rehab, and some of the closing costs in there in order to make it work. In situations like these, we would be able to finance at 100%. For investors who have multiple projects going at once, 100% financing can make a huge difference in their success.

What is a good deal?

A good deal is one that you are going to make money on. All lenders want is to have investors make money, pay them back, and do it again. Another important factor that we look at as a hard money lender is where the property is located.  While some properties might be easy to find comps, there are some rural properties that are harder to find comps on. In order to be successful in real estate investing, it is important that you not only make sure the location is good, but that you also create a property that is sellable. A hard money loan can help you achieve your success without requiring money out of your pocket or the need for a partner.

For example:

We had someone call us who had decided to use his dads money to buy and sell a property. When they got to closing, the dad said that he wanted not only his interest rate but 50% as well. While it seemed to be an easy way to get the money he needed for the investment, it ended up costing him more. A hard money lender might have a higher interest rate compared to traditional lenders, however, it is still a lot cheaper than having a partner.

Leveraging hard money at 100% just makes sense!

Keep in mind that these deals are for a shorter period of time for 6 months or less. This is because you are financing the whole amount. We just funded a deal for $120K. After all is said and done, they are going to make between $30K and $40K. Just by paying a hard money lender $6K to $8K for interest and expenses, they can make a really good profit on the property. That’s where leveraging hard money at 100% just makes sense! 

No hard pulls on your credit!

Another benefit to using hard money is that it doesn’t show up on your credit. This is because we don’t do hard pulls. While you don’t need a good credit score in order to be approved, it is important that you have a decent score. We understand that a lot of investors use their personal credit cards to cover their business expenses. As a result, it can quickly drive down their credit score. Unlike traditional lenders, we have the flexibility you need. Our main goal at Hard Money Mike is to help you succeed in real estate investing! 

We are here to help!

If you have a deal that you are interested in, and want to find out more about 100% financing, give us a call. We are happy to run through the numbers with you to determine if the property will be a good investment. There is a quick form on our website that you can fill out to give a little more information on the property that you are looking at. This form would include information about the property, some details about you, what you are trying to do, exit strategy, credit score, and your reserve. In the end, our goal is to determine if the deal is going to make you money. 

Here at Hard Money Mike we work with “value at” properties and can offer 100% financing today! Contact us to find out more! 

Watch our most recent video Can I Get 100% Financing with Hard Money to find out more!