884: How to Use "Hard Money" to Flip Houses, BRRRR, or Buy More Deals w/Will Heaton

You’ve heard top investors talk about “hard money loans” before, but what are they? You never walk into a bank and see a “hard money” sign, and if you aren’t outwardly searching for it, you’d probably never know hard money was a thing. That’s because hard money isn’t coming from a bank or big institution, and because of that, it has some HUGE benefits over getting a standard loan. Better loan-to-value ratios, higher lending amounts, faster funding, and the ability to get a loan on a ROUGH property are just a few. So, how do YOU find your first or next hard money loan?

We’ve got Will Heaton from Heaton Dainard Real Estate on the show to share his experience as a hard money lender and investor for the past two decades. Will has been on both sides of hard money—he’s been the lender and the borrower, but now primarily focuses on lending to OTHER investors trying to build their fix and flip businesses or real estate portfolios.

Will walks us through what hard money is, why it often beats bank loans, how much it costs, the hard money lending process from start to finish, and how to BECOME a hard money lender if you’ve got too much cash in the bank and want to make a solid return. Plus, who should and definitely should not be using hard money to invest in real estate. Having trouble getting your fix and flips or BRRRRs funded? Stick around because hard money may be your best bet. 

In This Episode We Cover:

Hard money loans explained and which investors should choose it over a bank loan

Common hard money fees, interest rates, and payoff periods 

The hard money process, from getting preapproved to paying back the loan

How to become a hard money lender yourself and put your cash to work 

The hard money “draw” process and when you can expect to get your money from a lender 

What happens if you DON’T pay back your hard money loan 

And So Much More!

Links from the Show

Find an Agent

Find a Lender

BiggerPockets Youtube Channel

BiggerPockets Forums

BiggerPockets Pro Membership

BiggerPockets Bookstore

BiggerPockets Bootcamps

BiggerPockets Podcast

BiggerPockets Merch

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts

Get More Deals Done with The BiggerPockets Investing Tools

Find a BiggerPockets Real Estate Meetup in Your Area

Expand Your Investing Knowledge With the BiggerPockets Books

Be a Guest on the BiggerPockets Podcast

Ask David Your Question

Dave's BiggerPockets Profile

Dave's Instagram

Henry's BiggerPockets Profile

Henry's Instagram

Catch Dave & Henry on the "On the Market" Podcast

Hard Money Lending 101

How to Become a Hard Money Lender

Connect with Will

Heaton Dainard

Intrust Funding

Will's LinkedIn

Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-884

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

Learn more about your ad choices. Visit megaphone.fm/adchoices