884: How to Use "Hard Money" to Flip Houses, BRRRR, or Buy More Deals w/Will Heaton
You’ve heard top investors talk about “hard money loans” before, but what are they? You never walk into a bank and see a “hard money” sign, and if you aren’t outwardly searching for it, you’d probably never know hard money was a thing. That’s because hard money isn’t coming from a bank or big institution, and because of that, it has some HUGE benefits over getting a standard loan. Better loan-to-value ratios, higher lending amounts, faster funding, and the ability to get a loan on a ROUGH property are just a few. So, how do YOU find your first or next hard money loan?
We’ve got Will Heaton from Heaton Dainard Real Estate on the show to share his experience as a hard money lender and investor for the past two decades. Will has been on both sides of hard money—he’s been the lender and the borrower, but now primarily focuses on lending to OTHER investors trying to build their fix and flip businesses or real estate portfolios.
Will walks us through what hard money is, why it often beats bank loans, how much it costs, the hard money lending process from start to finish, and how to BECOME a hard money lender if you’ve got too much cash in the bank and want to make a solid return. Plus, who should and definitely should not be using hard money to invest in real estate. Having trouble getting your fix and flips or BRRRRs funded? Stick around because hard money may be your best bet.
In This Episode We Cover:
Hard money loans explained and which investors should choose it over a bank loan
Common hard money fees, interest rates, and payoff periods
The hard money process, from getting preapproved to paying back the loan
How to become a hard money lender yourself and put your cash to work
The hard money “draw” process and when you can expect to get your money from a lender
What happens if you DON’T pay back your hard money loan
And So Much More!
Links from the Show
Listen to All Your Favorite BiggerPockets Podcasts in One Place
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Find a BiggerPockets Real Estate Meetup in Your Area
Expand Your Investing Knowledge With the BiggerPockets Books
Be a Guest on the BiggerPockets Podcast
Catch Dave & Henry on the "On the Market" Podcast
How to Become a Hard Money Lender
Connect with Will
Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-884
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