One of the most popular methods used to fund real estate investment projects is by using "hard money", sometimes referred to as private money. Hard money loans are short-term loans used to purchase real estate that requires some degree of repair. The repairs can range from lite rehabs that can be as simple as replacing carpet and adding a fresh coat of paint to total replacement of the entire inner of the property.

Hard money loans are also known to be fairly expensive with upfront fees and high-interest rates; so why would an investor ever want to use a hard money loan. There are a few advantages to using hard money loans including, they are usually only based on the property value, so you can have lower credit scores and still qualify. Also, hard money loans allow investors to use leverage so they only need to use a portion of their funds to get a project completed.

So how much does it cost to use a Hard Money loan? Is there an alternative funding method that is more beneficial to the investor?

Watch the video as we compare the costs and some of the advantages/disadvantages of using Hard Money vs. Unsecured Credit to fund a real estate project.