Often, real estate investors looking for a fix and flip loan, a construction loan, or a land loan, among other solutions, or real estate investors needing rapid financing turn to hard money as a solution. In fact, according to The Iceberg Report, 17% of real estate investors use hard money to finance their investments. Conducted by The Harris Poll and co-sponsored by Visio Lending, The Iceberg Report offers the most comprehensive data on investor strategies available. Here are some of the findings related to hard money:
How much are real estate investors spending on fees and interest for hard money loans?
<4% on Fees and Interest- 1% of investors
5-9% on Fees and Interest- 18% of investors
10-14% on Fees and Interest- 5% of investors
15-19% on Fees and Interest- 8% of investors
>20% on Fees and Interest- 3% of investors
How many investors are using hard money loans to finance buy and hold rental properties?
Close with short-term loan and plan to refinance- 33% of investors
Close with short-term loan with conversion option- 10% of investors
Disclaimer: The information in this blog has been prepared solely for informational purposes. The contents are based upon or derived from information generally believed to be reliable although Visio Lending accepts no liability with regard to the user's reliance on it. For legal advice, please contact your counsel.