Hard Money Lender Houston – Noble Mortgage

Hi, I’m Darel Daik, owner of Noble Mortgage and Investments. Noble Mortgage is a direct hard money
lender located in Houston, Texas but we also offer loans in Dallas, San
Antonio and Austin. I’m here today to talk about hard money and how to use it for residential real estate
investing. So what is hard money? Hard money is simply a short term
asset-based loan used by investors to purchase distressed residential real estate.
Hard money can be a very valuable tool for investors if you understand how it works and when to use it. So why do investors use hard money? Investors use hard money when they need to close a loan very quickly, They need more leverage on the loan, or they’re buying a property in need of repairs. Hard Money lenders can close loans in 7 to 10 business days. And because we’re basing the loans on the After Repaired Value, or A R V as we call it, you can often obtain up to 100% financing on a deal. When investors purchase a property in need of repairs they are often buying that property at a deep
discount. Hard money loans are not based on what you’re buying the property for, but rather what that property is going to be valued at
after the repairs are completed or again, the ARV. By basing the loan amount on the ARV, investors are able to obtain up
to 100 percent financing on a deal. Let’s walk through an example. Let’s take for an example, an investor is buying a property that cost
fifty thousand dollars. Now they’ve walked through the property with
their contractor and they’ve estimated that the repairs will be about fifteen
thousand dollars to complete the home. They’ve also estimated After Repaired Value, or again ARV, to be around one hundred
thousand dollars. Now if you take this loan to your
neighborhood bank or conventional lender they will loan you up to you
eighty percent of the purchase price. They’re not going to loan you the money for the repairs or the closing costs. Now, that would equate to twenty-five
thousand dollars out of pocket plus the closing cost
because it’s only going to give you a loan amount of forty thousand dollars. Let’s run this through
a hard money loans scenario. A Hard Money loan, again, is based on the ARV. So, the ARV being one hundred thousand
dollars A hard money lender would lend up to 70
percent of the one hundred thousand dollars, which
course is seventy thousand dollars. In this scenario you are obtaining up to
100 percent financing on the transaction which is 0
money out of pocket. So, as you can see Hard Money can be a very valuable tool for residential real estate investing. For more
information on our loan programs please visit us on the web at NobleMoney.com or just give us a call at 713-680-8100 Thank you and we look forward to hearing from you.

Paul Whisler

One Comment

  1. What is hard money? Allow Darel Daik, Noble Mortgage's CEO, explain what hard money is and how to use it. @Darel DaikĀ 

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