The Truth About Hard Money Loans (Pros and Cons Explained)

The Truth About Hard Money Loans (Pros and Cons Explained)

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Hard money loans are one of the most powerful tools in real estate investing and house flipping, but only if you know how to use them. In this video, I break down exactly how hard money loans work, including real deal numbers, interest rates, points, and how the draw process actually funds your project. You’ll see the real pros and cons of hard money loans, when to use them, and when to avoid them completely. I'll explain hard money lenders for beginners and how my investors use it to achieve financial freedom.

I’ll also cover how experienced investors use hard money to scale fix and flips, BRRRR deals, and new construction projects, plus how to calculate your total cost of capital so you don’t lose money on your first deal.

If you’ve ever searched β€œwhat is a hard money loan” or β€œare hard money loans worth it,” this video will give you the clearest answer on the internet.

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0:00 - Why hard money?
1:20 - What is a hard money loan
2:48 - Fix and flip vs refinance strategy
4:15 - How loan to cost really works
6:30 - Example breakdown: $250k property
9:05 - Rehab funding and draw system explained



Reach out if you’re ready to get financing on your next deal.
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➑️Email: [email protected]


*DISCLAIMER* All stats, data, mortgage pricing, and anything else mentioned is always subject to change and is provided merely as an example at the time of this recording**

Benjamin Stef Mortgage Loan Advisor | Mortgage License NMLS# 2018674
NEXA Mortgage NMLS# 1660690

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#HardMoneyLoans #RealEstateInvesting #FixAndFlip #RentalProperty #RealEstateTips #BeginnerInvesting #RealEstateFinance

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By: Ben Stef | Funding Freedom
Title: The Truth About Hard Money Loans (Pros and Cons Explained)
Sourced From: www.youtube.com/watch?v=W5smGAIJOok



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