On this podcast episode I talk about private lenders and hard money loans.
If you want to fix and flip properties, there is a good chance that you will need a loan from a private lender or a hard money lender.
Hard Money Loans are meant to be short term bridge loans and because they have high interest rates, they are NOT meant to be a long term financing option. For this reason, most hard money loans are short term interest only loans for a period of 1 year.
I discuss using hard money loans and borrowed money from private lenders, and why this is the perfect instrument for fixing and flipping houses. When you use borrowed money to finance the purchase of a fix and flip your goal is to buy, borrow, fix and flip the house within 6 months or less.
Private lenders and hard money loans are a very useful tool for rehabbers that fix and flip houses for a living. Every professional rehabber that I know (including myself) uses borrowed money to finance their fix and flips. The reason is that borrowing money will allow you to do more flips, will increase your leverage and will also increase your returns.
If you are just getting started out as an investor then I recommend you start out by learning how to wholesale and find wholesale deals before you dive into a fix and flip (especially with borrowed money).
Enjoy the podcast.
If you are brand new to real estate and want to learn more about how to wholesale real estate and flip houses then please register for the free wholesaling real estate training at this link below:
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FIXING AND FLIPPING TRAINING
If you want to learn how to fix and flip houses I have a fix and flip training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar
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