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A private money loan (a.k.a. hard money) is a short-term, asset-based loan used by real estate investors to quickly finance projects. Unlike traditional loans, loans are provided by private investors or companies, offering a faster and more flexible approval process. These loans are secured by the property itself, making them ideal for time-sensitive investments.

Common Use of Loans:

Flipping Houses: Ideal for professional flippers who need fast financing to purchase and renovate fixer-uppers for quick resale.

Investing in Rental Property: Suitable for investors who don’t qualify for traditional loans or need more funding than conventional lenders offer.

Purchasing Commercial Property: Beneficial for entrepreneurs and business owners looking to buy unique commercial properties without the constraints of conventional loan limits.

New Construction: Ground-up construction loans are a type of financing designed for builders, investors, or developers building new real estate projects from the ground up.

Buy and Hold: Buy and hold real estate is a long-term investment strategy where you purchase a property to rent it out and benefit from rental income and property appreciation over time.

HPC Loan Types

Pays for Acquisition of Investment Property

For residential, small multi-family, and small commercial.

A real estate standard loan is a private financing option to help borrowers purchase or refinance residential or commercial properties. These loans typically require a down payment, have fixed or variable interest rates, and involve a predetermined repayment schedule, often secured by the property itself or collateral such as equity in other properties.

Covers cost of Acquisition and Rehab

For residential, small multi-family, and small commercial.

A real estate rehab loan is a private financing option to help borrowers purchase or refinance residential or commercial properties. These loans typically require a down payment, have fixed or variable interest rates, and involve a predetermined repayment schedule, often secured by the property itself.

Pays for Acquisition of Investment Property

For residential, small multi-family, and small commercial.

A real estate standard loan is a private financing option to help borrowers purchase or refinance residential or commercial properties. These loans typically require a down payment, have fixed or variable interest rates, and involve a predetermined repayment schedule, often secured by the property itself or collateral such as equity in other properties.

Covers cost of Acquisition and Rehab

For residential, small multi-family, and small commercial.

A real estate rehab loan is a private financing option to help borrowers purchase or refinance residential or commercial properties. These loans typically require a down payment, have fixed or variable interest rates, and involve a predetermined repayment schedule, often secured by the property itself.

Pays for Acquisition of Investment Property

For residential, small multi-family, and small commercial.

A real estate standard loan is a private financing option to help borrowers purchase or refinance residential or commercial properties. These loans typically require a down payment, have fixed or variable interest rates, and involve a predetermined repayment schedule, often secured by the property itself.

Covers cost of Acquisition and Rehab

For residential, small multi-family, and small commercial.

A real estate rehab loan is a private financing option to help borrowers purchase or refinance residential or commercial properties. These loans typically require a down payment, have fixed or variable interest rates, and involve a predetermined repayment schedule, often secured by the property itself.

IMPORTANT: Scope of Work, Budget, and a Strategy

What is the Scope of Work?

A detailed scope of work is essential as it outlines the project’s tasks, execution plan, and timeline. This clarity helps communicate expectations and responsibilities to the parties involved, include the needed contractors, reducing misunderstandings and disputes. Without a clear scope, projects can experience “scope creep,” where tasks expand beyond original plans, inflating costs and causing delays. In real estate investment, time is money; delays not only increase expenses but also result in lost opportunities, as capital tied up in one project could have been invested elsewhere.

What is included in the Budget?

The project’s financial blueprint. The budget will outline anticipated costs and help investors assess the project feasibility, secure a loan, and manage cash flow effectively. A detailed budget helps the investor avoid overlooking or underestimate expenses, leading to problems that often require additional funding or add time to the project. The budget should show the return on investment, enabling investors to calculate potential profit and make informed spending decisions.

How do I describe our Strategy?

A strategy guides establishes the investor’s vision for the property with clear goals, whether for immediate income through flipping or long-term wealth through rentals. A well-crafted strategy enables informed decisions by considering market trends, economic indicators, and personal financial goals. It also aids in risk management, identifying potential challenges and ways to mitigate them.

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