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Buying Houses In Cash Via Hard Money

Cash has always been preferred by house sellers, whether private owners or banks.

By: Daniel Mc Grey
Category: Real Estate
Posted: Oct 28, 2009
Updated: Oct 28, 2009
Views: 83


Cash has always been preferred by house sellers, whether private owners or banks. There is a feeling of convenience brought by the word “cash” as opposed to electronic money transfer or other innovative methods of financial transactions nowadays. But what will you do if you want to be a “cash buyer” but you just don’t have the cash yet?
For rehabbers, or those in the flipping houses business, they turn to the tried and tested method of financing when it comes to buying real estate property – hard money loans.
Unlike traditional loans, hard money financing is really meant for those in the flipping houses. This type of funding is collateral-based, with the house you are about to flip serving as collateral. The approval of your loan will also depend on the property in question. For example, if it’s a fixer upper, hard money lenders will determine whether that house is indeed worth rehabbing and spending money on.
They compute how much they will lend you based on ARV, or after repair value, of the property. Usually, hard money lenders will give rehabbers 70% of the ARV and in most cases, this amount is already enough to purchase the fixer upper. The amount may even cover repair costs.
Hard money financing, unlike conventional loans, is also approved fast. In just a matter of days, hard money lenders can give you the funding you need to buy and repair that fixer upper. It is easy to find as there are many hard money lenders across the country who are willing to help those in the flipping houses business succeed.
You can check RehabHardMoney.com online to find hard money lenders in your area. Rehab Hard Money has a network of hard money lenders that covers the whole country. Rehab Hard Money loans are approved at least two days after the submission of all needed documents. You can also pre-qualify for hard money financing by filling out a borrower’s form on RehabHardMoney.com. You will get two free reports on hard money loans when you sign up with RehabHardMoney.com.

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