Why You Should Use Our Money, To Make Money

It Can Be that Simple

You’ve likely heard the saying “get rich using other people’s money.” Maybe you dismissed it because it seems like a scam. However, it’s quite the opposite, its actually how strategic investors make viable careers in real estate.

In fact, one of the most common mistakes people make when investing in real estate is using their life savings, retirement, and/or credit cards to purchase and rehab the property. This method of madness produces a much larger risk to you, the investor. If you can’t unload the property in a timely manner you’re stuck with the debt. If an emergency should arise, all your finances may be tied up. Another risk you run is doing damage to your credit score and that can take time to repair.

The best strategy is to use a hard money lender. This also happens to be the route used by investors and flippers you see on TV. (Think shows like HGTV’s, Flip or Flop.) When you apply for a hard money loan you are essentially asking a private investor to lend you the necessary cash on a short-term basis. Not only does it allow you to remain in control over your savings and credit but also, hard money loans can be processed much faster than bank loans. This is helpful in a competitive market and allows you to present your offer, cash in hand.

For more information, to apply for a hard money loan or to speak with a hard money lending expert visit our website.

Are Hard Money Loans Hard to Get?

FAQ’s of Hard Money Lending

You might be wondering if it’s hard to get a hard money loan. We certainly don’t think so! In fact, we’ve made it our business to make hard money lending extremely accessible to anyone, no matter if you’ve borrowed before or not. Here are some frequently asked questions and some cold hard facts of hard money lending.

Q: What is the difference between conventional lending and private hard money loans?

A: Conventional for loans are governed by Fannie Mae and Freddie Mac and income and credit are considered for approval.  Whereas, private hard money loans are not regulated by the government, and offer short term lending with less restriction on the borrower’s income or credit.

Q: How do hard money loans work?

A: Hard money loans are short-term loans secured by real estate. They are funded by private investors as opposed to conventional lenders such as banks or credit unions. The terms are usually around 12 – 24 months. However, some lenders offer the option of three to five-year arms amortized for 30 years.

Q: How much is a hard money loan?

A:  There are two main factors. One is the loan amount and the other is the experience of the borrower. The better your credit, the better your terms may be.

Q: Where can I find a hard money lender?

A: You can start right here, on our website. Fill out our application and have it reviewed by the many different lenders who also have access to our website. These lenders are waiting to come across loan requests just like yours!

Q: What do hard money lenders look for?

A: Hard money lenders are looking at the value of the collateral which in this case, is the property you are seeking money to buy, fix/flip or rent. In addition, a private lender may consider the value and history of the neighborhood in terms of growth, comps, and details such as your renovation plans and a detailed outline of your financial plan for the property. In addition, hard money lenders will obtain a credit and background check and may ask for your personal tax return, not for income calculation but rather as evidence you are filing annually.

Q: When and why should you use a hard money lender?

A: Hard money loans are meant for short term investments. Typically, 12 – 24 months. Hard money loans are issued far quicker than traditional bank loans. Closing with a hard money loan can happen within two weeks. Therefore, when you need financing quickly and given the competitive nature of the real estate market, we often do, a hard money loan makes sense. If you are developer looking to purchase a building with units for rent you should consider a hard money loan. If you are looking to make home improvements to add value to your home, you should consider a hard money loan. If you are a developer or individual seeking to purchase or flip/rehab a property and then immediately sell it, you should consider a hard money loan. To recap, hard money loans are used when the borrower is looking for leniency on credit and timing.

Q: How are hard money loans structured?

A: Hard money loans are structured based on a percentage of the quick-sale value of the property. This is called the loan-to-value or LTV ratio and typically ranges between 60-85% of the market value of the property. Your LTV will depend on your level of experience as a borrower and your credit.

Call us today to speak to a hard money expert! 203-974-3322

The ABC’s of LLC’s – 5 Easy Steps to Registering Your Business

The ABC’s of LLC’s 

5 Easy Steps to Registering Your Business

Before you can obtain a hard money loan for funding your residential fix and flip, fix and lease, and buy to lease projects, you must be a registered business. Taking care of this important step will save you time during the underwriting process. Here are five easy steps to help you get going.

The first thing is to select the state in which you’ll be doing the majority of your business in. Keep in mind this is a general overview, the exact requirements vary from state to state. If you plan operating in multiple states you may apply for a foreign entity in the other state(s). Two important numbers to have on hand will be your Secretary of State’s office, and your CPA, who can help you determine which is in your best interest, establishing an LLC or, a Corporation.

Once you have determined what type of business to establish, you’ll want to name it. The name must be available for use (not in use by another entity) and must comply with your specific state’s rules. In addition, if you name your LLC or corporation one thing, and do business publicly as another, you will need to file for a DBA statement. DBA stands for “Doing Business As.”

If you chose to become an LLC, you’ll file “Articles of Organization.” This is a fairly simple process which can be completed in a few short steps and is done through the Secretary of your state. If you choose to establish a corporation, we refer to the document in this step as, Articles of Corporation. Articles of Corporation also contain Corporation By Laws.

LLC’s will prepare an Operating Agreement. This agreement outlines the financial agreements and rights of the individuals who are to be involved in the business. If there are multiple individuals involved the Operating Agreement should reflect ownership percentage. All members listed on the Operating Agreement will need to also be listed on the loan application.

The last step is to obtain an EIN (Employer Identification Number) or, a Federal Tax Identification Number. This step is necessary if you plan to have employees.

It is in your best interest to keep your entity in good standing by filing yearly reports. Also, as mentioned, it’s important to have your business registered before you apply for your loan. This way, you can start looking for the perfect investment opportunities and Lend Some Money can get you approved for funding in as little as 24-hours.

News and Hashtags from 2017 – The Real Estate Industry’s Year in Review

News and Hashtags from 2017

The Real Estate Industry’s Year in Review

We’ve put a list of this year’s surprising statistics, fun facts and hashtags from the real estate industry. Here they are, in no particular order.

  1. In the first quarter of 2017 the home flipping loan volume rose to a nine-year high! #instalike
  2. Additionally, 2017 saw a rise it hadn’t seen since 2006 in the profits made on homes that were flipped. #instamoney
  3. The 2017 real estate market saw stiff competition where multiple offers and bidding wars become somewhat of a norm. #competition
  4. In March of 2017, the median number of days an MLS listed home remained on the market was just 34. #amazing
  5. Flip property extraordinaire and Property Brother, Drew Scott hammered his way to the finale (Part 1) of Dancing with the Stars, got engaged and you can catch a glimpse of the happy couple’s new series: Property Brothers at Home: Drew’s Honeymoon House on #HGTV. #DrewLovesLinda #DWTS
  6. After a whole heap of success including a popular TV series, the Magnolia Market, a restaurant, teaming up with Target and the list goes on, Fixer Uppers Chip and Joanna Gains announce season five will be their last. #shiplap

All the items on our list have contributed in one way or another to the increase in popularity of investing in real estate. In fact, individuals all across the country are rehabbing properties. #bosslife

You can see their transformations for yourself because they are using social media to document their fix and flip journeys. #photooftheday

Thanks to hard money lending, many of them are middle class citizens quickly on the rise towards higher income levels. #motivation

Lastly, Lend Some Money joined the 500 million other users on Instagram! Be sure and #followme @lendsomemoney.

Pennies to Profits – How to Jump-Start Your Career in Real Estate

Pennies to Profits

How to Jump-Start Your Career in Real Estate


You may think you need a big pile of cash to jump start your career as a real estate investor. You know that not having a large amount of capital means you’ll likely need to borrow money to get started. Maybe that’s why you haven’t started, the entire traditional lending process can certainly be intimidating. However, let’s explore some ways you can turn your pennies, into properties and begin profiting in a short amount of time.

As mentioned, lending from a bank can mean some pretty ridged restrictions. For example, you may be required to put a certain amount of money down, your credit and income will be scrutinized and the overall process is time consuming. So, what do you do when you’re good for the money, but not in the eyes of a bank? Consider a private lender.

Securing money from a private lender is one of the fastest options available. We all know, time is money. The more time you save, the sooner you can buy, flip, rent or sell the property for a profit. One reason why lending from a private investor is faster, is because it’s not as complex. Private lenders put heavier consideration on the property to be invested upon rather than the investors income and credit history.

This can benefit you especially if you’re a first-time investor. Imagine having an entity with strong financial analysis and business analytical chops look at your investment and approve it. It’s validation that you’re likely to succeed in your new business venture. Of course, your success still relies on your ability to flip, rent, sell, etc. while meeting market demands, but a little reassurance never hurt anyone.

But how do you find a private lender and apply for a private loan? Start right here, at lendsomemoney.com. The application is quick and painless. You could be approved in as little as 24-hours. Our system is set up so that if we can’t approve your loan, someone in our network most likely can. Don’t wait, get the funding you need for your future, today!

Common Mistakes While Flipping Houses

Common Mistakes while Flipping Houses

Flipping houses is an exciting venture that can make you a bundle. However, if you aren’t careful, it can also cost you. Here are some hot tips to keep your expenses low and profit high.

  1. Trust your Realtor- After repair value can only be assessed by local realtor, not by online tools. Trying to determine the After Repair Value of a home without consulting a realtor is impossible to do accurately. Although online tools such a Zillow may be a convenient place to begin your research, be sure to consult with a professional local realtor in order to accurately predict how much value can realistically be added.

Working with a local realtor also has the advantage of saving you time, which is key in a competitive real estate market. The longer you hold onto a property the greater the chance that the property’s value fluctuates from the original ARV, which increases the riskiness of your project.

2. Going it alone-While it may be possible to flip a house yourself, working with a team will allow you to leverage the experience of others, shortening your learning curve and allowing you to avoid major problems. Your team should include a real estate attorney, an accountant, an insurance agent, real estate agents and contractors.

Although hiring professionals may cost more up front, it can save you a bundle down the line by helping you avoid common pitfalls.  For instance, working with a CPA can allow you to keep your taxes as low as possible while staying on the right side of the IRS.  

3. Hold on to property for too long-The longer you hold on to a property, the higher your soft costs will be. Soft costs are the costs associated with holding onto the property such as interest on loans and real estate tax.  Holding on to a property for too long can cause your soft costs to rise by thousands of dollars.  A $100,000 loan financed at 10% will cost you $5000 in interest after six months, $7,500 after 9 months and $10,000 after a year. Electric bills, gas bills, property maintenance, all these expenses accumulate and can add thousands on to your expenses.