Hard Money?

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. When used appropriately, HARD MONEY is really just Opportunity Capital, allowing investors access to projects which would otherwise be out of reach.

Although “borrowing hard money” may sound a little more daunting than it actually is, individuals that jump to this conclusion may be unaware of how this form of lending actually works. Hard money loans are more heavily weighted by the value of a property vs creditworthiness of a borrower. Hard money usually functions as a short term loan that is more diverse than its traditional counterpart. Because hard money usually comes from private sources, such as Veristone, the loans are underwritten with the risk tolerance of the money lender in mind. This allows lenders to be more lenient in providing unconventional terms to a borrower in exchange for higher cost.

Frequent hard money borrowers gravitate towards the opportunity provided by said lenders as they are subject to:

• less regulation
• can fund immediately
• less paperwork
• look more to the asset than the borrower regardless of their credit or income position AND
• are able to lend to both businesses and individuals

To qualify for a hard money loan with Veristone you will need to go through the prequalification process – this includes but not limited to:

• Application
• Credit check
• Bank and asset statements
• Company formation documents (if applicable)

Veristone can move quickly – once prequalified, loans can close in as little as 2-3 days. On average – hard money will increase your leverage/buying power by 4-5X. Using hard money works just like cash – enabling you as the borrower to make an all cash offer – which is much stronger and carries more weight in this type of competitive market.

If you’re a real estate investor or looking to get into the investment real estate game – I encourage anyone to consider and evaluate hard money as an option to elevate your business.
If you’d like to learn more, come to the next Seattle Investors Club meeting on Sunday January 11th at 4pm and hear directly from Veristone.

Justin Andrews
D: 425.250.6112 | C: 425.829.1164
www.veristonecapital.com