Hard money lender for flip property masoba capital2
Private Hard Money

What is Private Hard Money?

There are many different terms that this can go by.  We are sure you have heard this referred as, "Private Money," "Equity-Based Financing," "Bridge Financing," or "Creative Financing," but in all reality, they all refer to the same thing.

This type of funding is a non-traditional financing that relies on the property.  It's merits, rather than on the personal qualifications of the applicant.  These types of loans are typically secured by a note and deed of trust in first lien position on the property.  Basically, it is asset based.

In other words, if you have a great deal under contract, you can find the money to do the deal and Masoba Innovations wants to be your broker funding source!
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Who Uses Hard Money?

Private Hard Money
Private Hard Money
There is this misunderstanding that the only people who use hard money (or OPM) are the people who have bad credit, bankruptcies, short sales, and foreclosures on their record and can’t get access to cash any other way. While this is true in some circumstances, many very successful real estate entrepreneurs use hard money each and every time they buy a property.

Why would real estate investors with liquid and sizable cash reserves on hand still prefer to use OPM (Hard Money Loans) every day of the week? Why would heavy-hitters, with gobs of personal cash, regularly use OPM?

Habitual, hard-core Deal Makers understand that if they leverage their own cash reserves, they simply tie up their own money for 6-12 months. This makes it impossible to buy more properties based on the amount of money in their bank accounts, which serves as proof that they can service loans on varying cash-flowing properties.

By leveraging OPM, they keep their own money liquid, which means they can do more deals, more often!

Steps To Take To Getting Hard Money

The biggest blunder any investor can make in real estate is to shop too early for money, yet this is the most common mistake we see investors making in real estate. The rule of thumb is: it’s much easier to shop for cash when you have a deal in hand and under contract.

Why? Because as long as that property is not under contract, it’s up for grabs by anyone and everyone and no lender will spend time and resources on a property that can be snatched out from under the borrower at any moment’s notice.

Putting the house under contract is an easy enough, 4-Step process.
  • Step 1: Prospect and Review Potential Properties
  • Step 2: Write Offers
  • Step 3: Get Offer Accepted by Seller
  • Step 4: Put Earnest Money in Escrow to complete the contract

Once these 4 Steps are completed, you have a fully executed Purchase and Sale Agreement, the property is under contract, and you are ready to shop for cash.
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5 Reasons To Use Hard Money

Hard Money is commonly considered “Really, really expensive money unless you know what you’re doing.” But actually it’s much more than that. Although Private Money tends to be more expensive than conventional financing, its benefits often outweigh its costs.
 
  • It’s Fast: Flipping homes is a time-sensitive business. Depending on how fast you submit the loan package items, you can have your loan in several days to several weeks. It can take one to three months to secure a loan with traditional financing.
  • It Looks at Collateral, Not You: Hard money lenders are not interested in credit score.They are interested in how much value they see in the property since the property is the asset that is backing the loan.
  • It’s Everywhere: Hard money lenders are often people who have funds parked in lower-yielding financial vehicles like CDs, stocks, or IRAs and are looking for newer ways to maximize their funds in higher yielding conduits, like lending on real estate.
  • It’s Creative: With hard money, you can get funding on great deals that banks would normally shun. Promising investment properties that needs repairs, make them unsuitable for most banks, but perfect for most hard money lenders.
  • It’s Flexible: Hard money lenders don’t have the same strictly-enforced guidelines to follow for their loan applications, so they are more willing to help creatively structure loans that work for the project.

Having a Private Hard Money Broker, like Masoba Innovations Capital, in your court gives you confidence to put properties under contract. As long as you find the no-brainer deal that fits our guidelines, do the proper due-diligence, and apply.

FIX AND FLIP

Non-Owner Occupied Single Family Residential (1-4 Units)
 
Investment Purpose: Acquisition, Cash-Out, Refinance, Rehab
 
90% Purchase; 100% Rehab Not To Exceed 65% Loan To Value; Cash-Out Refi 50%
 
Rates: 8%-15%
 
Term: 6-24 Months
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PROOF OF FUNDS

If you’re making offers on real estate, a Proof of Funds Letter is a NECESSARY and POWERFUL part of an Offer Package.

Give Your Offer Credibility
 
Easy To Generate
 
Close Deals Faster
Get a Proof of Funds