Hard money
lenders need training to avoid the pitfalls.
Hard money leaders are real estate loan companies that make loans to borrowers who cannot qualify for loans from banks and traditional lenders. For this reason, the process includes plenty of risks and pitfalls. Hard money lenders can get specialized training to learn minimize the risk.
Identification
Training in hard money lending is for hard money lenders, brokers and private investors looking to engage hard money investing. The objective is to teach candidates minimize the risk associated with the practice.
Features
During training, candidates learn leverage mortgage pools, use deficiency judgments, use hypothecating loans (in which securities are pledged as collateral), market to borrowers, underwrite loans and service loans. In addition, candidates learn avoid the pitfalls associated with the laws governing hard money lending.
Benefits
Generally, hard money contracts are secured against real estate that is worth significantly more than the loan amount. As a consequence, if the borrower makes payments, hard money lenders benefit from high interest rates. If the borrower defaults on the loan, hard money lenders secure property worth significantly more than the loan.
