What do we actually mean by hard money lending? The term “Hard Money” refers to a category of loans that originally developed as an alternative form of loan of “last resort” for those seeking collateralized loans. Although Hollywood sometimes depicts Hard Money Lenders as loan sharks or mobsters, the reality is quite different from that. Hard Money Lending plays a vital role in our economy by providing a critical source of funds to individuals and businesses.

Those involved in commercial real estate transactions, for example, often need loan money faster than banks and mortgage companies can provide it, so they turn to Hard Money Lenders in order to take advantage of time-sensitive opportunities. Similarly, individuals often need cash loans in amounts that are not too large or two small to fit the criteria of traditional banks, but Hard Money Lenders will assist them with customized loans to meet their needs.

Our experience with Hard Money Loans is that people typically use them based upon two factors. One is credit or lack thereof and the other is speed. Hard Money Loans are made to people who simply do not have the credit qualifications or the time to get a conventional loan. But it is not always a credit issue. Sometimes a person’s credit can be Triple A but the type of property they are buying does not fit into the categories of loans offered by conventional lenders, so they will use a Hard Money Loan (HML) instead to facilitate the purchase.

Because they offer this kind of flexibility, HML are much more expensive. They can cost as much as 10 points upfront, plus interest rates as high as 15% a year. But in most cases the costs and rates of a HML are not that important to the borrower. They plan to use the loan to turn a substantial profit or to save a valuable asset from going into foreclosure or bankruptcy. To them the added expense of the HML is just part of the cost of doing business and paying a high premium is easily justified because of the other financial advantages gained through the HML. Essentially the HML market is driven by people and businesses willing to pay much higher rates in exchange for speed and efficiency.

Upon becoming one of Hard Money School licensees you will receive a full package of tools and information that will equip you to work as a Commercial Loan and Hard Money Loan broker.

The package includes four 2-hour live training webinars. These will instruct you in the basics of how to locate lending opportunities, evaluate the quality of loan applications, find the right lenders, package loans, and ultimately prepare loans for successful closing.

Each of our live webinars is conducted on the 1st, 2nd, 3rd and 4th Monday of every month. If you would like to, you can retake a webinar at any time – via your choice of either a live or pre-recorded version. We will offer additional webinars to help grow your business as we produce new educational and training materials or invite guest lenders to make special presentations.

You will also be provided with a fully functional and professionally designed website to give your business instant creditability, broad Internet exposure, and instant links to potentially lucrative leads generated from our main site.

To ensure that you have all the prerequisite legal forms necessary to run your business you will also receive a comprehensive legal package. Additionally we will give you effective marketing collateral. These materials will include templates and examples of professionally composed emails, postcards, and printable letters that are designed to facilitate the launch of your business.

Plus you benefit from access to our staff of experienced experts who are available to you five days a week, from 9 a.m. to 6 p.m. Eastern Standard Time. In other words, by becoming an authorized licensee you automatically gain all of the supporting resources you will need to become proficient and profitable in this attractive sector of the loan industry.

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