7 steps to guaranteed hard money loan approval

www.hardmoneybankers.com 800-883-8290

7 Steps to GuaranteedHard Money Loan Approval

Hard Money Bankers, LLCwww.hardmoneybankers.co

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HMB Team

• Chris Haddon- Investor Relations/Principal

• Jeffrey Shiller, Esq.- Legal Counsel/Principal

• Jason Balin- Underwriter/Principal


What Will You Learn Here Today?

- What Is Hard Money?

- Who Uses Hard Money?

- How Does a HM Lender evaluate a deal?

- Ensuring Loan Approval/Long Term Relationship

- Insider Tips from the “Front Lines”


What is a Hard Money Loan?

Technically defined as "a conservative loan made against hard assets," a "Hard Money" loan (sometimes referred to as an “Equity-Based Loan”, "Private Mortgage“, or a “Bridge Loan”) is a loan that is offered when a conventional loan may not fit the borrower's lending needs. This generally happens when a borrower needs money in order to jump on a "hot" real estate deal and does not have time to wait for the stringent and sometimes lengthy underwriting process associated with a conventional loan. The capital for a hard money loan comes from individual investors or a private fund, not from institutions such as banks. It can be offered in both residential and commercial real estate transactions, and the interest rate paid by borrowers typically ranges from 12-18% annually.


Who Uses Hard Money Loans?(and why don’t they just go to a bank?)

- RE Investors, Property Owners

- Time Crunch

- Unfinished or not stabilized properties

- Bridge Loan (short term)


What Types of Properties?

- Local Real Estate (DC, MD, NoVA primarily)

- Residential Investment Properties

- Small Commercial (Multi Unit Apt, Office)

- Rehab and Moderate Construction


Insider Tip #1

Ask the HM lender what their “sweet spot” is


How Do We Evaluate a Deal: 4 C’s

Collateral

Character

Capacity/Exit Strategy

Credit


Insider Tip #2

Credit isn’t everything…but it tells a story


Step 1 - Find the Deal

- Follow Your Formula

- MLS, Bank REO

- Short Sales

- Estate Sales


Insider Tip #3

Bank REO’s are hot right now!

Check out HMB Cribs.


Step 2

Executive Summary with Exit Strategy


Insider Tip

Deal Evaluation Spreadsheet

http://www.hardmoneybankers.com/f/rehab.xls




Step 3

Full Loan App with Personal Financial and REO

http://www.hardmoneybankers.com/loanapplication.html




Step 4

Comparable Sales and Pics of Subject Property

There’s NEVER enough pics!!


Insider Tip #4

Don’t Inflate Your Exit Price! (ARV)


Step 5

Contractor Estimate/Scope of Work

Draw Schedule with Timeframe


Insider Tip #5

Upgrades On Par With The Neighborhood


Step 6

Bring Something to the Table:

- Cash

- Collateral (or X-Collateral)

- Credit

- Experienced Partner

Times Have Changed Since 2004!


Step 7

Perform! In Every Way Possible


Insider Tip

It’s All About the Relationship #6


Hard Money Bankers

Hard Money Bankers, LLC9017 Red Branch Rd., Suite H

Columbia, Maryland 21045800-883-8290

Check Our New Blog: HMBCribs.com

7 steps to guaranteed hard money loan approval

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