Mastering Hard Money Loans Flip Distressed Homes Profitably

Okay so you want to be the one to buy the distressed home Can't use the regular loans FHA VA conventional Fannie Mae Freddie Mac none of them they don't want to lend on a house that's falling apart that's got mold that's the roof's leaking and the windows are broken and the graffiti all over and maybe there's a homeless person inside maybe the tenants are still in there right They don't want to lend for that so who can you go to It's called hard money What does hard money usually require 25 percent down is kind of the median So like once you have a relationship with them they might let you get away with the lowest 20 percent down Um maybe when they first start a relationship with you they'll be at 30 percent down What's their interest rate It's about one percent per month So let's take this into consideration There's a nine hundred thousand dollar neighborhood and there's a house that for some reason this lady or man is ready to sell it to you for six hundred thousand dollars Yeah with a twenty percent down best case scenario is a hundred and twenty thousand dollars So you take a hundred and twenty thousand dollars of cash and it could be other people's money so you could borrow that from whoever you want because they don't have underwriters really They kind of do but their underwriting situation is a lot less stringent because I'll tell you in the end of this video why they do these high risk loans So they take 20 percent down they have