HARD MONEY LENDER
Financial Investing - Jade Ramos & Steven Espinoza
Jade Ramos and Steven Espinoza from KW Pasadena conducted a workshop focused on lending and financing strategies, particularly in the area of private equity or “hard money” lending for real estate investors. With 20+ years of experience in the industry, Jade emphasized the importance of financial literacy, homeownership, and wealth-building through investments like Fix-and-Flip properties. The discussion covered critical aspects of hard money loans, including interest rates, down payments, credit score requirements, and project evaluations. Jade highlighted the flexibility and speed of private equity loans, such as funding within 48 hours for acquisitions and the importance of having an exit strategy. The duo shared how their company assesses the scope of work and after-repair value (ARV) to offer loans for Fix-and-Flip properties, as well as the potential for commercial and ground-up construction financing. They also touched on best practices for ensuring success in the real estate investment sector.
Top 5 Takeaways
Leverage Hard Money Loans: Flexible financing with quick funding for investors with tight timelines.
Exit Plan Required: Investors must have a clear plan, such as selling or refinancing the property.
Experience Matters: High leverage loans require experience, typically five deals in two years.
Scope of Work is Critical: Detailed project descriptions impact loan approval.
ARV-Based Lending: Loan amounts are based on after-repair value and comparable sales.
Top 5 Best Practices
Thorough Project Planning: Provide a detailed scope of work, including material quality and cost breakdown.
Establish Strong Relationships: Build trust with lenders by demonstrating past experience and financial stability.
Use Group Showings for Efficiency: For larger projects, avoid one-on-one meetings by organizing group tours.
Be Prepared with an Exit Strategy: Whether selling or refinancing, ensure the exit plan is well thought out.
Monitor Market Trends: Use AI and data-driven insights to assess property value and market demand.
Top 10 FAQ
What is hard money lending?
Private equity loans for real estate investors, often used for Fix-and-Flip projects.
What is the typical interest rate for a hard money loan?
Rates start at 10.5% for experienced investors. (at time of recording)
What is the minimum credit score required?
Generally, a credit score of 660 or higher is preferred.
How much down payment is required?
10-30% depending on the borrower’s experience and project.
What is ARV (After-Repair Value)?
The estimated future value of a property after renovations are completed.
What documents are required for loan approval?
A detailed scope of work, credit report, financial statements, and project details.
How quickly can loans be funded?
In some cases, within 48 hours for acquisitions.
Can hard money loans be used for primary residences?
Generally, no. These loans are for business purposes like investment properties.
What is the maximum loan-to-value (LTV) ratio?
Up to 90% LTV depending on the borrower’s experience and property.
What happens if the borrower cannot repay the loan?
The property may go into foreclosure, but an exit strategy helps mitigate this risk.
Financial Investing Workshop
Investment Bankers Network
About Jade Ramos
Jade Ramos is the Business Development Manager of Investment Bankers Network (INBANET). She has been in the Mortgage Industry for over 25 years. She has worked for several fortune 500 hundred companies such as Guaranteed Rate, Mr. Cooper and New American Funding working in various positions such Loan processor, underwriter, Loan Originator, Branch Manager during her career. She has found her passion in the mortgage industry in the Private money area of the industry where she is thriving helping Investors get financing for their fix and flips transactions and much more.
About Steven Espinoza
Steven is a seasoned Mortgage Banker with a passion for helping individuals and businesses achieve their financial goals. With 21 years of experience in the lending industry, He brings expertise, integrity, and personalized service to every transaction. Born and Raised in Southern California, He takes pride in his extensive knowledge of areas and cities that are great for starter families and Investors. Steven has extensive knowledge of Guidelines, Income, Credit, Title, etc. He answers his phone 7 days a week, at all hours.
Jade Ramos
Public Relations Manager
Investment Bankers Network Inc. "INBANET"
8141 2nd Street, Suite 347, Downey CA. 90241
Corp CA BRE #01890554
Corp CA NMLS #640607
(562)641-6299 (Direct)
(714)442-2569 (e-Fax)
(877)895-5150 (Toll-Free)
