Real estate is a popular investment these days. But if you want to buy a property to flip or rent, the price of entry has become much higher since the pandemic began. Blame it on a shortage of housing, increased demand, record-low mortgage rates, and inflation. The point is, the deal you might have been able to make pre-pandemic could now be out of reach. But what if you could borrow up to $1 million with no money down? Would you do it? If so, read on.
HardFunded.com is ready to find you a loan
HardFunded.com isn't a lender. Rather, it's a marketplace that connects borrowers with lenders -- and there are 100 lenders on the platform. As the name suggests, the company works with hard money lenders and lenders in the private investment space, as well as with clients in all 50 states and Puerto Rico.
The advantage of using a marketplace like this is that you'll have a better chance of connecting with a lender most likely to approve your loan.
Although HardFunded.com has been around for five years, it's offering a new loan program that's garnering lots of attention; namely, because the program enables real estate investors to borrow up to $1 million for various types of real estate deals. Borrowers can get fix-and-flip loans, fix-and-rent loans, and long-term rental loans -- all with no money down.
Says HardFunded.com CEO Mike Sarrage: "Many successful investors often run into a cash crunch because their capital is tied into other projects. HardFunded.com's new zero-down lending program allows qualified borrowers to finance up to 100% of their real estate investments."
About hard money lenders
If you're unfamiliar with hard money lenders, you should understand the pros and cons. The biggest advantage is the loan is secured by the real estate. The borrower, therefore, doesn't need to go through the often rigorous and lengthy process required when applying for a conventional loan through a bank. Hard money lenders typically act fast. Borrowers often get their money in one to two weeks.
The biggest disadvantage is the high interest rates borrowers are charged, which can range from 10% to 18%, with origination fees between one and three points.
Hard money loans are typically short-term loans (e.g., one to three years). Borrowers usually pay the interest on the loan with a balloon payment at the end of the term. For flippers, the sale of the house should pay the loan. And for long-term rental loans, the borrower would need to get a traditional mortgage to pay the hard money loan.
To qualify for a zero-down-payment loan through HardFunded.com, borrowers need a FICO credit score of at least 700 and must have a minimum annual income of $125,000. This loan product is broken into two parts: a down payment loan based on the borrower's creditworthiness and a traditional hard money loan that's backed by the property being financed. The combined loans borrowers can get range from $200,000 to $1 million.
Hardfunded.com could be the solution for your next real estate deal, but it's imperative you understand the terms of your loan and pay it back on time; otherwise, the hard money lender will take your property.