7 steps to guaranteed hard money loan approval
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www.hardmoneybankers.com 800-883-8290
7 Steps to GuaranteedHard Money Loan Approval
Hard Money Bankers, LLCwww.hardmoneybankers.co
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www.hardmoneybankers.com 800-883-8290
HMB Team
• Chris Haddon- Investor Relations/Principal
• Jeffrey Shiller, Esq.- Legal Counsel/Principal
• Jason Balin- Underwriter/Principal
www.hardmoneybankers.com 800-883-8290
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”
www.hardmoneybankers.com 800-883-8290
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.
www.hardmoneybankers.com 800-883-8290
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)
www.hardmoneybankers.com 800-883-8290
What Types of Properties?
- Local Real Estate (DC, MD, NoVA primarily)
- Residential Investment Properties
- Small Commercial (Multi Unit Apt, Office)
- Rehab and Moderate Construction
www.hardmoneybankers.com 800-883-8290
Insider Tip #1
Ask the HM lender what their “sweet spot” is
www.hardmoneybankers.com 800-883-8290
How Do We Evaluate a Deal: 4 C’s
Collateral
Character
Capacity/Exit Strategy
Credit
www.hardmoneybankers.com 800-883-8290
Insider Tip #2
Credit isn’t everything…but it tells a story
www.hardmoneybankers.com 800-883-8290
Step 1 - Find the Deal
- Follow Your Formula
- MLS, Bank REO
- Short Sales
- Estate Sales
www.hardmoneybankers.com 800-883-8290
Insider Tip #3
Bank REO’s are hot right now!
Check out HMB Cribs.
www.hardmoneybankers.com 800-883-8290
Step 2
Executive Summary with Exit Strategy
www.hardmoneybankers.com 800-883-8290
Insider Tip
Deal Evaluation Spreadsheet
http://www.hardmoneybankers.com/f/rehab.xls
www.hardmoneybankers.com 800-883-8290
Step 3
Full Loan App with Personal Financial and REO
http://www.hardmoneybankers.com/loanapplication.html
www.hardmoneybankers.com 800-883-8290
Step 4
Comparable Sales and Pics of Subject Property
There’s NEVER enough pics!!
www.hardmoneybankers.com 800-883-8290
Insider Tip #4
Don’t Inflate Your Exit Price! (ARV)
www.hardmoneybankers.com 800-883-8290
Step 5
Contractor Estimate/Scope of Work
Draw Schedule with Timeframe
www.hardmoneybankers.com 800-883-8290
Insider Tip #5
Upgrades On Par With The Neighborhood
www.hardmoneybankers.com 800-883-8290
Step 6
Bring Something to the Table:
- Cash
- Collateral (or X-Collateral)
- Credit
- Experienced Partner
Times Have Changed Since 2004!
www.hardmoneybankers.com 800-883-8290
Step 7
Perform! In Every Way Possible
www.hardmoneybankers.com 800-883-8290
Insider Tip
It’s All About the Relationship #6
www.hardmoneybankers.com 800-883-8290
Hard Money Bankers
Hard Money Bankers, LLC9017 Red Branch Rd., Suite H
Columbia, Maryland 21045800-883-8290
Check Our New Blog: HMBCribs.com
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