This is How “Hard Money” Loans Work (Banks for Investors) (Rookie Reply)
Summary
This BiggerPockets article discusses hard money loans for real estate investors, offering insights into loan terms and strategies for making offers more competitive. Hosts can learn about how hard money lenders operate and what factors can make their offers more attractive when buying a property. The article also touches on the importance of asking the right questions of lenders.
Key Insights
- •Hard money lenders often base loan terms on the cost of the deal (acquisition + rehab) and the after-repair value (ARV) of the property.
- •Hard money lenders may offer 90% of the total cost (acquisition plus rehab) or 65% of the ARV, whichever is less.
Action Items
- ✓Talk to multiple hard money lenders to compare terms, especially if you are new to investing.Effort: mediumImpact: medium
- ✓When making an offer, consider factors like purchase price, speed of closing, contingencies, and earnest money deposit to make your offer more competitive.Effort: lowImpact: medium
Watch Out For
- ⚠Not asking enough questions about the details of a hard money loan, such as fees, processes, and refinancing terms, can lead to unfavorable financial outcomes.
Related News
KB Home bets on built-to-order strategy amid a spec-heavy market
KB Home is shifting its focus to a built-to-order (BTO) strategy, aiming for higher margins in a challenging market. Hosts should pay attention to this trend as it may impact competition and pricing in their local markets, especially if private builders react to the changes.
![An Overview of Dynamic Pricing for Hosts [+5 Tools Included]](/_next/image?url=https%3A%2F%2Fwww.igms.com%2Fcontent%2Fimages%2Fwordpress%2F2022%2F10%2FDepositphotos_dynamic_pricing.jpg&w=3840&q=75)
An Overview of Dynamic Pricing for Hosts [+5 Tools Included]
This article discusses dynamic pricing for short-term rentals, explaining how it works to optimize revenue and occupancy by adjusting rates based on market conditions. Hosts should consider implementing dynamic pricing, using tools that automatically adjust rates, to stay competitive and maximize profits.
United Real Estate CEO Dan Duffy on the roadmap for competitive advantage
This article highlights the importance of data and AI in gaining a competitive edge in the 2026 housing market, emphasizing that hosts who prioritize data-driven decisions and adapt to market changes will thrive. Hosts should focus on leveraging data and AI to make informed decisions about their STR business to capture market share.
Foreclosure Starts Fall 7.6% Nationally, But These Key Counties Show Rising Distress
Foreclosure starts are down nationally, but certain counties are seeing a rise in early-stage filings, which can indicate future pre-foreclosure opportunities. Hosts in Florida, California, Ohio, North Carolina, and Texas should monitor county-level data to anticipate potential distressed property sales and consider how this might affect their local markets.