Posted by Jim Kennedy - Houston, TX on July 14, 2002 at 11:03:06:
Jerry,
This topic has been discussed many times on this news group. Do a search of the archives for “hard money” and you’ll find your answer as well as a plethora of information about the topic.
Ed Wachsman has a pretty good explanation of hard money in his How To article titled ?A Glossary Of Common Terms Used In Loans And Lending?. You can find it at:
http://www.creonline.com/articl68.htm
Because hard money is ?expensive?, you should only consider using hard money as short term financing. It is ideal for acquiring and rehabbing a property that you plan on selling to a retail owner occupant as your exit strategy.
Since hard money lenders would require a first lien position, hard money is not a viable source of down payment funds.
Hope this helps.
Best of Success!!
Jim Kennedy,
Houston, TX