“I need a hard money loan for three months maximum,” I hear our potential borrowers say all the time. “I have the right partners, the right contractors and we will be moving fast.” “How many properties have your flipped in the last two years?” I always ask them. The answer is typically none.
Hard Money Loan
On every team you have what can be considered the “support players.” We’d like to consider ourselves support players for our hard money loan customers. Support players are the people who work hard, but don’t always get recognized as star players. This is not to say that these people are not important. In fact without these people the whole process would break down, but you don’t hear them mentioned as much as the lawyer, lender or real estate agent. These are still key members of your team, so you need to choose them wisely and recognize their worth.
Being experts in hard money loans, we are sometimes asked if it’s a good idea to have a lawyer as part of your real estate investment team. Here is the answer. A friend once told me that the interesting thing about being an attorney was that no one wants you until they need you and no one wants to need you. As humorous as that sounds, the truth is that if you are going to do any type of investment business, you are going to need an attorney as a key member of your team. Everything you do needs to be above board, and attorneys are part of the process to make sure that happens.
We got a question from one of our hard money loan clients the other day about whether or not he should hire a real estate agent, or if he should just get a license himself. That’s a great question given the availability of online courses on real estate these days. None of these will take the place of good old fashion research by the way. But the ease of which you can obtain a real estate license has made it a viable option for investors. If you are a real estate investor pondering the same question, let’s take an unbiased look at the pros and cons.
Hurray! You’ve read our blog, filled out our detailed application, talked to our underwriters and are now pre-approved for a hard money loan. What does it mean to be pre-approved? What are the next steps that you should take steps? Perhaps even more importantly, how can you leverage this pre-approval to make money in real estate? In this article we break the process down into three simple steps designed to give you peace of mind and help you snatch that perfect investment property.