The Scoop on Hard Money Loans


The Funding Aspect of Fix and Flip Properties

You can make a lot of money when you fix and flip, but first you have to spend money.  If you don’t have any (or you don’t have a partner that does), does it mean you’re up the creek?  There goes your dreams?  Your ability to be an entrepreneur?  A self made man or woman?

Obviously not.

Private Money Lending

Private money lenders (or hard money lenders) give “short term” loans to a real estate investor looking to purchase non-owner occupied property.  Instead of looking at credit, like banks, the property/numbers are the qualifier for the loan.  Good credit may help improve your rates, but you don’t need it.  Private money lenders look at the deal, determine whether it’s a good deal, and if the deal makes sense, you will get the loan.

The Benefits of Private Money Loans over Bank Loans?

Speed, accessibility and ease.  Many people do not realize the amount of time and work involved in getting a loan.  Private money lenders definitely require you to do your due diligence and fill out applicable paperwork, but the bank process is SO much more tedious and time consuming.  Plus, you are required to have good credit.

Hard Money Rates and Terms

Hard money loan rates and terms all differ based upon the deal and the borrower.

Private money lenders look at:

  • Experience (number of deals)
  • Skin in the game (cash down)
  • Reserves
  • LTV
  • FICO score (if it would help your rate)


While you typically cannot receive funding for your whole property (Cogo lends up to 65% ARV), hard money loans are key to funding your fix and flip deals.  Plus, Cogo even provides you with a proof of funds letter so you can easily make offers.

If you have a property in mind, purchase this $25 rehab appraisal (way cheaper than a regular appraisal) and call 1-(800) 473-6051 so we can get you moving forward.

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