Real Estate Rookie This is How “Hard Money” Loans Work (Banks for Investors) (Rookie Reply)
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Oct 17, 2025 Discover how to make competitive offers in real estate and understand seller motivations beyond just price. Dive into the intricacies of hard money loans, including terms and common pitfalls. Explore the pros and cons of local versus out-of-market investing, along with essential due diligence tips. Learn about creating strong partnership contracts, planning for potential failures, and fair compensation methods. Gain insights to refine your investment strategies and strengthen partnerships in your real estate ventures!
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Compete With Speed And Certainty
- Offer a faster closing timeline to make your bid more attractive to sellers.
- Increase earnest money or remove contingencies to create more certainty and beat competing offers.
Remove Seller Burdens To Win Deals
- Offer to haul away junk and relieve emotional burden to win estate or relocation sales.
- Keep an inspection clause but waive repair demands to stay competitive while checking numbers.
Hard Money Terms Are Driven By Risk And Structure
- Hard money lenders usually require borrowers to have 'skin in the game' and vary terms by borrower experience.
- Lenders price loans based on either percent of total cost or percent of ARV, so structure affects required cash.
