Join Aviva as she speaks with hard money lending expert, Jason Balin, about the advantages of hard money loans in real estate investing. They discuss the speed and flexibility of hard money lending, the evolving commercial real estate market, and strategies for mitigating risk in lending. Learn how to secure quick cash for great opportunities in real estate!
Hard money lending offers quick capital access based on collateral, enabling faster approvals compared to traditional bank loans.
Recent financial shifts have made banks more selective, highlighting hard money lending as a flexible solution for real estate investors needing rapid financing.
Deep dives
Understanding Hard Money Lending
Hard money lending is explained as a quick alternative for real estate investors needing faster capital access than traditional bank loans. The speaker highlights that hard money lenders base their decisions on the collateral, often property, for a faster underwriting process compared to traditional banks. By focusing on asset-based lending and collateral, hard money lenders prioritize speed and flexibility in financing, catering to real estate investors in need of rapid capital without extensive paperwork or delays.
Impact of Recent Financial Changes on Real Estate Lending
Recent financial shifts, notably rising interest rates, have influenced the lending landscape, particularly in commercial real estate. The speaker discusses how these changes have led to banks being more selective in lending, focusing on specific asset classes and borrower profiles. Hard money lending emerges as a pragmatic solution for real estate investors facing time constraints and seeking flexibility in financing, contrasting the lengthier processes associated with traditional bank loans.
Mitigating Risk in Hard Money Lending
The podcast delves into risk management strategies in hard money lending, emphasizing the 'Four C's': collateral, character, capacity, and credit assessment. Collateral, character, and capacity are underscored as fundamental factors in risk evaluation, with collateral being the primary consideration. The importance of thorough due diligence, proper underwriting, and understanding the borrower's capabilities are highlighted to mitigate risks effectively in the lending process.
Have you ever found yourself stuck, unable to get the money you need for your real estate projects? Maybe dealing with banks feels like a never-ending maze, with lots of rules and waiting. But what if there's a simpler way to get the cash you need, fast?
Join Aviva as she talks with Jason Balin from Hard Money Bankers to break down hard money lending. They make it simple, explaining how it's different from regular loans and why it could be awesome for you. Jason Balin explains how hard money lending can be your ticket to quick cash and easier approvals. Instead of waiting weeks or months, you could get the money you need in just a day, giving you the freedom to jump on great opportunities when they come up.
BY THE TIME YOU FINISH LISTENING, YOU’LL LEARN:
What hard money lending is and how it can help you score deals faster
The 4 important things lenders look at before giving you cash
Why commercial real estate is changing and what it means for you
The joy of finding cool deals without all the stress
Chapters: 0:00 Introduction and Background 1:34 Starting Hard Money Bankers 3:40 Collateral-Based Lending 4:31 Advantages of Hard Money Loans 6:51 Impact of Recent Changes in Lending 10:15 Future of Commercial Office Space 12:37 Shifts in the Real Estate Market 15:39 Understanding Hard Money Lending 22:47 Mitigating Risk in Hard Money Lending
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