Tag Archive for: Hard Money

What’s Better for You: Hard Money or a Partnership?

Today we are going to discuss what’s better for you: hard money or a partnership. Every investor runs into this question sooner or later:
Should I use hard money or bring in a partner?

Let’s break it down so you can choose what fits your deal best.

First, What’s Hard Money?

Hard money is a loan based on the property — not your personal income.
You borrow from a lender and pay interest, but you keep full control of the project.

Pros of Hard Money:

  • Fast funding. Many loans close in just a few days, which can give you an edge.

  • No partner needed. That means you get to keep 100% of the profits.

  • Flexible terms. It works well for flips or short-term projects.

Cons of Hard Money:

  • Higher rates. You’ll pay more than you would with a traditional loan.

  • Short terms. So, you’ll need to finish fast or refinance quickly.

  • More risk. If the deal goes sideways, you’re the one responsible.

Example:
Let’s say you find a flip that needs $200,000.
A hard money lender gives you $160,000 (80% of purchase), and you put in $40,000.
You make monthly interest payments. Then, when you sell the property, you keep all the profit.
In this case, hard money gave you speed, control, and full profit — but it also came with risk.

On the Other Hand, What About a Partnership?

A partnership means you team up with someone else.
Usually, they bring the money, while you bring the hustle.

Pros of a Partnership:

  • No loan required. You don’t need to qualify or make payments.

  • Shared risk. If things go wrong, you won’t shoulder it all alone.

  • Build strong connections. A great partner today could help with 10 deals tomorrow.

Cons of a Partnership:

  • Split profits. Often, you’ll walk away with only 50% — or sometimes even less.

  • Less control. You’ll need to agree on decisions, which can slow things down.

  • More communication. You’ll need to share updates and work closely together.

Example:
Let’s say that same $200,000 flip comes up.
Your partner funds the whole thing, including repairs. You do the work.
Then, you split the profits 50/50.
This works great if you don’t have the funds, but you’re willing to trade profit for opportunity.

So, Which Is Better?

Well, that depends on what you need the most.

Choose Hard Money If:

  • You want full control of your deal

  • You have the down payment and monthly payments covered

  • You believe in the deal and want to keep all the profit

Choose a Partnership If:

  • You don’t have enough cash or credit

  • You’re new and want to lower your risk

  • You’re okay sharing profits in exchange for experience

A Quick Comparison

To help you decide faster, here’s a side-by-side look:

Feature Hard Money Partnership
Profit Share 100% yours Shared
Control All yours Shared decisions
Risk All yours Shared
Cost Monthly payments No loan payments
Speed Very fast funding Depends on partner
Experience Needed Some required Can be new

Final Thoughts

At the end of the day, there’s no wrong choice — only the right fit for your deal.
Some investors use hard money to scale fast. Others build long-term success with great partners.
In fact, many smart investors use both, depending on the deal.

So before you jump in, think about your goals:
Do you want control, or would you rather share the load?
Do you have money for payments, or would a partner give you the boost you need?

Whatever you choose, take action.
Deals don’t wait, and neither should you.

Need help deciding?
We can walk you through it, run the numbers, and help you pick the smartest path forward.
Reach out today — your next deal could be one good decision away.

Contact Us Today! 

Is hard money or a partnership better for you? Contact us today to find out more!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success

5 Tips to Get Approved by Hard Money Lenders Fast!

Today we are going to discuss the 5 tips to get approved by hard money lenders fast! Hard money loans are a great option for real estate investors who need fast funding for unique deals. Unlike traditional bank loans, hard money lenders focus on the property and exit strategy rather than personal income or credit scores. Let’s take a closer look!

1. Have a Clear Exit Strategy

Hard money lenders want to know how you plan to pay back the loan. Whether it’s flipping the property, refinancing into a long-term loan, or selling part of the land, your exit strategy must make sense.

Example: If you’re flipping a house, explain how long renovations will take and what comparable homes in the area are selling for. Show that you have a solid plan to sell quickly and at a profit.

2. Keep the Loan Term Short

Hard money loans are meant to be short-term solutions, usually between 9 to 12 months. The faster you can complete your project and pay off the loan, the better your chances of approval.

Example: If you’re subdividing land, outline a timeline for approvals, sales, and closing. A clear plan reassures lenders that they’ll get their money back quickly.

3. Show Responsible Credit Habits

Hard money lenders don’t care about your credit score, but they do look at your credit history. If you have a pattern of late payments, bankruptcies, or foreclosures, it may raise concerns.

Tip: If your score is low due to high credit usage but you always pay on time, highlight that to the lender. They’re more interested in your payment habits than the number itself.

4. Keep Your Loan-to-Value (LTV) Low

Most hard money lenders prefer an LTV under 75%. For fix-and-flip deals, they typically lend up to 75% of the After-Repair Value (ARV). The lower the risk to the lender, the faster they’ll approve your loan.

Example: If you’re purchasing a $200,000 property expected to be worth $300,000 after repairs, a hard money lender may lend you up to $225,000 (75% of ARV).

5. Move Quickly and Be Prepared

Hard money lenders work fast, but they expect you to move just as quickly. Have all required documents ready, including property details, a project timeline, and any additional funding sources.

Tip: Work with a lender who understands your local market. A lender familiar with your area can approve deals faster because they know the risks and opportunities.

Final Thoughts

Hard money loans can be a game-changer for real estate investors who need fast, flexible funding. By following these “5 Tips to Get Approved by Hard Money Lenders Fast”, you’ll increase your chances of securing the funds you need without delays.

If you’re ready to compare rates, try our Loan Cost Optimizer to find the best hard money loan for your next project! Contact us today!

Watch our most recent video to find out more!

Hard Money vs. Traditional Loans

Today we are going to discuss hard money vs. traditional loans. When it comes to real estate, picking the right type of loan can make or break a deal. Two common options are hard money loans and traditional loans, but they’re as different as night and day. Let’s break it down.

Hard money loans

Hard money loans are short-term loans that are all about speed and flexibility. They’re funded by private lenders who care more about the property’s value than your credit score or income. Need to close fast on a fixer-upper? A hard money loan might be your best bet. These loans usually come with higher interest rates and shorter repayment periods, making them great for quick projects like flips.

Traditional loans

On the other hand, traditional loans, think mortgages from banks or credit unions, focus on you as the borrower. They’ll dive deep into your credit, income, and debt before approval. These loans take longer to close but often come with lower interest rates and longer terms. Traditional loans are perfect for long-term investments, like rental properties you want to hold onto for years.

Example:

Here’s a quick example: If you’re flipping a house and need money within a week, a hard money loan could save the day. But if you’re buying a rental property to build wealth over time, a traditional loan might be the smarter move.

Each loan type has its place. The key is matching the loan to your goals. Ready to dive deeper? Let’s explore how to choose the right one for your next deal.

Contact Us Today! 

Which is best for your next investment need, Hard money vs. traditional loans? Contact us today to find out more!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

Hard Money vs. DSCR Loans: Which One Fits Your Deal?

Today we are going to discuss hard money vs. DSCR loans: Which one fits your deal? If you’re a real estate investor, you’ve probably heard of both hard money loans and DSCR loans. They’re both powerful tools, but they work in different ways. Let’s break it down so you know which one fits your next deal.

Hard money loans are like a quick fix for short-term projects. Imagine you’ve found a fixer-upper that needs work before it can shine. A hard money loan gives you the cash fast, but it often comes with higher interest rates and shorter repayment terms. It’s like borrowing from that one friend who says, “Pay me back in a month, or else!”

On the other hand, DSCR loans are better for the long haul. These loans are based on your property’s income, not your personal finances. Say you’ve got a rental property bringing in steady cash every month—this loan is built for that. DSCR loans offer longer terms and more stability, making them great for rentals.

Here’s a quick example:

  • Fixing and flipping a run-down house? Hard money might be your answer.
  • Holding onto a rental that pays its way? DSCR loans can make your life easier.

Choosing the right loan depends on your goals. Short-term flip? Go hard money. Long-term rental income? Think DSCR. It’s all about matching the loan to your strategy!

Contact Us Today! 

Hard money vs. DSCR loans: Which one fits your deal? Contact us today to find out more!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

Hard Money vs. Cash: Which Works for Your Deals?

When it comes to real estate investing, one big question is: Should I use hard money vs cash? Each option has pros and cons, and the right choice depends on your goals and situation.

Hard money is a loan from private lenders, usually for short-term needs. Think of it as a tool to grab great deals fast. For example, if you find a fixer-upper at a steal, a hard money loan can help you buy it quickly and fund repairs. But be careful, these loans often come with higher interest rates and fees.

Cash, on the other hand, gives you ultimate control. There are no monthly payments, no interest, and no lender to answer to. But tying up all your cash in one deal can leave you short for future opportunities or emergencies. Imagine putting every dollar into a property, only to miss out on a killer deal later because your funds are tapped out.

Both hard money and cash have their place. Hard money helps you move fast and stretch your resources. Cash offers simplicity and peace of mind. The key is finding the right balance for your investing strategy.

Contact Us Today! 

Which is best for your next investment need, Hard money vs Cash? Contact us today to find out more!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

How Can You Find Funding to Finish a Project?

Today we are going to discuss how you can find funding to finish a project. You’re almost there, your project is so close to the finish line, but funding has run dry. What can you do? Don’t worry; there are ways to secure the money you need to wrap things up and see your project through.

One option is a short-term bridge loan. These loans are designed to help investors like you finish a project quickly. For example, imagine a house flipper running out of funds during the final stages of renovation. A bridge loan can provide the cash to cover the last repairs and get the property ready to sell.

Another choice is leveraging a home equity line of credit (HELOC). If you have equity in another property, this can act as your safety net. Picture this: you own a rental property with equity built up, and you tap into it with a HELOC to cover project costs.

Sometimes, smaller private lenders are more flexible than banks. They often work with investors in unique situations, like funding smaller deals in small towns or unfinished projects.

The key is knowing where to look and having a solid plan to show lenders. The better your project looks on paper, the easier it will be to find the funding you need to finish strong.

Contact Us Today! 

What type of financing is right for you? Contact us today to find out more about real estate investment loans!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

Private Money vs. Hard Money: What’s the Difference for Real Estate Investors?

Today we are going to discuss hard money vs private money. As a real estate investor, you’ll hear the terms private money and hard money tossed around a lot. Both can help you fund deals, but they come with key differences. Knowing these can save you time, money, and stress.

Let’s break it down.

Hard money loans come from professional lenders. These lenders specialize in quick, short-term loans for real estate deals like flips or rentals. Hard money often means higher interest rates and fees, but you get speed and reliability in return. For example, if you find a fix-and-flip deal that needs to close in 10 days, hard money might be your go-to.

Private money, on the other hand, usually comes from individuals—friends, family, or other investors. These loans often have flexible terms since the lender isn’t a professional. Imagine asking a retired family member to fund your next rental in exchange for interest payments. With private money, relationships matter more than a credit score.

So, which is better, hard money vs private money? It depends on the deal. If you need speed and structure, hard money may be the answer. If flexibility and trust are key, private money might work best.

Contact Us Today! 

Which is best for you, hard money vs private money? Contact us today to find out more!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

What Is Hard Money?

Today we are going to answer the question, “What is hard money?” Hard money is a quick and flexible way for real estate investors to get funding. It’s different from traditional loans. Instead of banks, private lenders provide the cash. The loan is backed by the property itself, not your credit score or income.

Think of hard money as a bridge. It helps you close deals fast or fix up properties when traditional lenders might slow you down.

For example, let’s say you find a fixer-upper with huge potential. A regular bank says no because the property needs repairs. A hard money lender, on the other hand, sees the property’s future value. They offer you a loan based on that. This gives you the chance to buy the property, renovate it, and either sell it or refinance with better terms later.

The trade-off? Hard money loans often have higher interest rates and shorter terms. They’re not meant for long-term financing, but they’re a powerful tool when used wisely.

If speed and flexibility are key, hard money can open doors that traditional loans keep shut. It’s about making the deal work, even when the numbers seem tricky.

Ready to learn how to use hard money the right way? Stick around for more tips and insights!

Contact Us Today! 

What type of financing is right for you? Contact us today to find out more about real estate investment loans!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

How to Guarantee 100% Financing for BRRRR Properties

Investing in BRRRR properties (Buy, Rehab, Rent, Refinance, Repeat) can be a great way to grow your real estate portfolio. However, one big question always pops up: How to guarantee 100% financing for BRRRR properties? With some careful planning and understanding of the numbers you can set yourself up for success. Let’s walk through the steps.

Step 1: Know Your Maximum Loan Amount

Before diving into the deal, you need to know how much your lender will finance. This comes down to two key numbers: your After Repair Value (ARV) and your lender’s Loan-to-Value (LTV) ratio.

What is ARV?

ARV is the expected value of your property after repairs. It’s what you can sell it for or the appraised value when you refinance.

Loan-to-Value (LTV)

LTV is the percentage of the ARV that your lender is willing to lend. Most lenders offer 70-75% of the ARV. So, if your property’s ARV is $200,000, and your lender offers 75% LTV, they’ll lend you $150,000.

Here’s a quick example:

  • ARV: $200,000
  • LTV: 75%
  • Maximum Loan Amount: $150,000

Step 2: Fit All Costs Under Your Loan Amount

To guarantee 100% financing, all your costs need to fit under the maximum loan amount. Your costs typically include:

  • Purchase Price
  • Rehab Costs
  • Closing Costs

For example, if your maximum loan is $150,000, your purchase price, rehab, and closing costs need to total $150,000 or less.

Example:

Let’s say you have the following costs:

  • Purchase Price: $100,000
  • Rehab: $40,000
  • Closing Costs: $5,000

Total costs = $145,000. Since this is under your $150,000 maximum loan, you can cover all your costs with the loan, meaning 100% financing!

Step 3: What Happens if Your Costs Are Over?

Sometimes, your costs may exceed the maximum loan amount. For instance:

  • Purchase Price: $120,000
  • Rehab: $40,000
  • Closing Costs: $5,000
  • Total Costs: $165,000

If your loan maxes out at $150,000, you’ll need to bring $15,000 of your own money to the table. This is why it’s crucial to carefully estimate your costs and compare them to your maximum loan.

Tips for Securing 100% Financing

  • Plan Your Rehab Costs Wisely: Keep your rehab within a budget that fits under the loan amount.
  • Negotiate Purchase Prices: The lower you negotiate the purchase price, the more room you have for other costs.
  • Include Closing Costs: Some lenders allow you to roll closing costs into the loan, which can help with 100% financing.

Conclusion

Getting 100% financing for BRRRR properties is possible when you know your numbers and plan carefully. Focus on maximizing your ARV and keeping your costs within your lender’s loan limit. Contact us today if you have questions about fitting everything under your loan, tools like loan calculators can help you run the numbers before you commit. 

Watch our most recent video to find out more about: How to Guarantee 100% Financing for BRRRR Properties

Airbnb Investment Property

What exactly is an Airbnb investment property and is it the right choice for you? Today we will be taking a closer look!

What is an Airbnb?

An Airbnb is a vacation rental as opposed to a long-term rental property. Think about a small cabin in a popular hiking town or a beachside condo. People are able to book short stays, which can bring in more money than a traditional rental. 

How can an Airbnb help me?

Airbnb properties also give you flexibility. You can use the property yourself or rent it out when you want. Some investors start by renting their home part-time, testing the waters, and seeing how much they can make. A well-located and nicely furnished space can attract guests, especially if you offer extras like a guide to local spots or cozy decor.

Check out an Airbnb as an investment property! 

There are challenges, of course, like dealing with cleaning, guest management, and local regulations. But with the right setup, many investors find it worth it. And since you’re earning nightly, the income adds up quickly, giving you cash for future investments. In short, Airbnb properties can be a solid way to build wealth through real estate.

Contact Us Today! 

Is a Airbnb right for you? Contact us today to find out more about investment properties!

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential property will be a good investment.

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