Real Estate Investing Without Spending Your Own Money

**rehabhardmoney** · 10-26-2009, 10:26 PM

Starting your own business can be a tough job when you do not have enough capital to start with. However, in real estate investing today, things have been easier with hard money loans.
Remember when investors say they can earn money without spending some of their own? Well, it’s possible.

Hard money loan is a loan secured by the value of a real estate property. By applying for a hard money loan, an investor can pursue his business of flipping and rehabbing houses without spending his own money. Unlike a traditional loan, you can obtain a hard money loan depending on the property or deal at hand. Simply put, if the property has potential to sell, you get the loan.

Hard money loan is advisable for beginning investors who lack funds or for those who have a bad credit history. Borrowers need not worry about their credit qualifications in obtaining a hard money loan. Credit qualifications will only have little or no effect on the loan. The amount of the loan is up to 70% of the after-repaired value of the property. However, one must be aware that hard money loan has higher interest rates than traditional loans.

Hard money lending is a great way for real estate investors to benefit from. Fast and easy loans can significantly help investors start on their flipping, wholesaling and rehabbing business today. Just remember to carefully plan your approach and you can be on your way to making lots of money in real estate investing.

Usually, hard money lenders are investors themselves, thus they may be a little hard to find. However, thanks to the internet, finding the best hard money lender is much easier now.

**gstone** · 10-28-2009, 09:39 AM

Can you guide me to the sources that you speak of?

**mr1** · 10-28-2009, 10:15 AM

gstone: Talk to as many independent local mortgage brokers (not banks) as you can. Surely, one or more of them have investors who are willing to do hard money loans. You're going to pay out of the wazzo in fees, though. If you are not an experienced real estate investor I'd steer clear of hard money loans. I'm one of the guys who provides hard money for my local mortgage brokers. I got that hard money by way of real estate investing (before the down market). Back in the day we could do 2 step loans at 90% LTV. Sure wish we could do those again.

Regards.

**gstone** · 10-28-2009, 10:56 AM

Thanks for the response. I am an experienced investor, and have used Private and Hard Money in the past, however the sources that I have used before are no longer there. so i am familiar with the costs associated. Just have to work the numbers into the deals and make sure that it is sweet enough to work. I am in Philadelphia area, let me know if you hear of any private/hard $$ sources out this way.

**mr1** · 10-28-2009, 01:13 PM

contact your local mortgage brokers - they will know.

**cezzz** · 11-09-2009, 09:04 AM

Great information here, I'm learning a lot here. Banks are earning lots of money without spending their own money. That's one for the great opportunity.