Hard money lending, explained. Jason Balin of Hard Money Bankers tells Aviva why real estate investors use hard money lenders instead of banks, and why he says capital can come in a day to a week, versus 30 to 45 days at a bank.
In this clip:
• What "hard money" actually means (Jason: "hard just means asset")
• Bank loans vs. hard money: speed, flexibility and paperwork
• How a collateral-based, first-lien loan works, with a $500,000 property and $400,000 loan example
• Why investors with strong cash flow but imperfect paper financials turn to hard money lenders
• The four things Jason checks before funding a deal, starting with collateral and character
• Mistakes private lenders make, including second mortgages behind a hard money lender
• Why he prefers lending to owning real estate
Timelines, costs and requirements discussed here are Jason's own estimates and vary by lender and deal. As he notes, a bank loan can end up being a little cheaper.
CHAPTERS
0:00 Hard Money vs. Bank Loans
0:57 What Is Hard Money Lending?
2:22 Collateral, Speed and Flexibility
4:58 What Lenders Check Before Funding
7:28 Mistakes Private Lenders Make
9:32 Why He Loves Hard Money Lending
10:31 Where to Find Jason
Hard Money Bankers: hardmoneybankers.com
Disclosure: Jason Balin is the founder of Hard Money Bankers, a private lending company that lends to real estate investors, and runs the Hard Money Mastermind, a group for hard money lenders and aspiring private lenders. He discusses his own business in this episode. Guests' opinions are their own.
#commercialrealestate #hardmoney #realestateinvesting
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