Hard money loans and soft money loans are common in the fix and flip area of real estate investing. While both have their clear benefits and drawbacks, they individually need to be used to fund the right type of deal. So when you’re looking at your next wholesale or off-market property, you’ll be able to finance it best to maximize your return on investment.
James Dainard from Heaton Dainard Real Estate is joined by Ashley Kehr, host of the Real Estate Rookie Podcast to talk about the key differences between these two types of real estate financing. We talk through rates for hard and soft money loans, points needed to pay, where to find these loans, and what to ask a lender.
We were also lucky enough to visit two of James’ properties, one which was purchased with hard money and one purchased with soft money. Can you guess which one used to have fifteen tenants living in it?
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00:00 Intro 00:34 Hard Money vs. Soft Money 01:02 What is a Bridge Loan? 02:32 Average Hard Money Interest Rates 03:16 Where to Find Hard Money 04:09 Questions to Ask a Hard Money Lender 06:42 What is Soft Money? 07:52 When To Use Soft Money 09:27 Where to Find Soft Money Lenders 11:04 Get Prequalified Before! 12:07 A Hard Money House 14:18 A Soft Money House
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By: BiggerPockets Title: Hard Money Loans vs. Soft Money Loans | When to Use Each Sourced From: www.youtube.com/watch?v=whhbd6GTO3s
