Steps to Guaranteed Hard Money Loan Approval Hard Money Bankers, LLC

HMB Team Chris Haddon- Investor Relations/Principal Jeffrey Shiller, Esq.- Legal Counsel/Principal Jason Balin- Underwriter/Principal

What Will You Learn Here Today? - What Is Hard Money? - Who Uses Hard Money? - How Does a HM Lender evaluate a deal? - Ensuring Loan Approval/Long Term Relationship - Insider Tips from the “Front Lines”

What is a Hard Money Loan? Technically defined as "a conservative loan made against hard assets," a "Hard Money" loan (sometimes referred to as an “Equity-Based Loan”, "Private Mortgage“, or a “Bridge Loan”) is a loan that is offered when a conventional loan may not fit the borrower's lending needs. This generally happens when a borrower needs money in order to jump on a "hot" real estate deal and does not have time to wait for the stringent and sometimes lengthy underwriting process associated with a conventional loan. The capital for a hard money loan comes from individual investors or a private fund, not from institutions such as banks. It can be offered in both residential and commercial real estate transactions, and the interest rate paid by borrowers typically ranges from 12-18% annually.

Who Uses Hard Money Loans? (and why don’t they just go to a bank?) - RE Investors, Property Owners - Time Crunch - Unfinished or not stabilized properties - Bridge Loan (short term)

What Types of Properties? - Local Real Estate (DC, MD, NoVA primarily) - Residential Investment Properties - Small Commercial (Multi Unit Apt, Office) - Rehab and Moderate Construction

Insider Tip #1 Ask the HM lender what their “sweet spot” is

How Do We Evaluate a Deal: 4 C’s Collateral Character Capacity/Exit Strategy Credit

Insider Tip #2 Credit isn’t everything…but it tells a story

Step 1 - Find the Deal - Follow Your Formula - MLS, Bank REO - Short Sales - Estate Sales

Insider Tip #3 Bank REO’s are hot right now! Check out HMB Cribs.

Step 2 Executive Summary with Exit Strategy

Insider Tip Deal Evaluation Spreadsheet

Step 3 Full Loan App with Personal Financial and REO

Step 4 Comparable Sales and Pics of Subject Property There’s NEVER enough pics!!

Insider Tip #4 Don’t Inflate Your Exit Price! (ARV)

Step 5 Contractor Estimate/Scope of Work Draw Schedule with Timeframe

Insider Tip #5 Upgrades On Par With The Neighborhood

Step 6 Bring Something to the Table: - Cash - Collateral (or X-Collateral) - Credit - Experienced Partner Times Have Changed Since 2004!

Step 7 Perform! In Every Way Possible

Insider Tip It’s All About the Relationship #6

Hard Money Bankers Hard Money Bankers, LLC 9017 Red Branch Rd., Suite H Columbia, Maryland Check Our New Blog: HMBCribs.com