Ever wonder what the magic formula is to get a hard-money loan funded?
There is quite a bit of misconception about how a hard money lender (private lender, bridge lender, etc.) underwrites its commercial and residential loans. Many believe that there is a magic formula hard-money lenders use in order to determine which loans to fund. Unfortunately there is no magic formula since each transaction is unique. In this article I will discuss the basics of hard-money underwriting and how this differs from a conventional lender. Before beginning, it is important to note that there are very big differences in how a hard-money lender underwrites versus a conventional lender
(bank, credit union, etc.).
To read the entire article: Hard Money Basics Colorado Real Estate Journal