Private Money Loan: 25 Questions Every Real Estate Investor Should Know

By Jacqueline O'Shaughnessy, Loan Officer / Private Capital, NMLS #382900 — South Wind Financial, Inc, NMLS #9462 — Las Vegas, NV @themortgageRX

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Understanding Hard Money Loans

1. What is a private money loan?

2. How do hard money lenders work?

3. What is the difference between hard money and a traditional mortgage?

4. What types of properties can you finance with a hard money loan?

5. When does it make sense to use hard money?

6. How fast can a hard money loan close?

Qualifying & Getting the Loan

7. What are the requirements for a hard money loan?

8. What credit score do you need for a hard money loan?

9. How much can you borrow with a hard money loan?

10. What is LTV in hard money lending?

11. What is the 70% rule in hard money lending?

12. Do hard money lenders require an appraisal?

13. What documents do you need for a hard money loan?

Rates, Terms & Using Hard Money

14. How much does a hard money loan cost?

15. What interest rate can I expect on a hard money loan?

16. What is the typical term of a hard money loan?

17. Are hard money loans interest-only?

18. Do hard money loans have prepayment penalties?

19. Can you use hard money for a fix and flip?

20. Can you use hard money for new construction?

21. Can you have multiple hard money loans at the same time?

Exit Strategy & Protecting the Investment

22. What happens when a hard money loan comes due?

23. Can you refinance a hard money loan into a conventional mortgage?

24. What happens if you can't pay off a hard money loan on time?

25. What questions should you ask a hard money lender before borrowing?