What is a hard money 2nd loan? In this video, real estate investor and hard money lender Beau Eckstein tells us all about hard money second loans, aka equity lines or HELOCs.
It's a second deed of trust. When you purchase a home, you get a first mortgage or first deed of trust. Often, you may need to borrow more than that in order to do some construction work or rehabilitate a property. In order to do this, using hard money, you get a second mortgage, or second deed of trust.
The lender in a second deed of trust loan comes behind the first mortgage lender. It's riskier for the lender; hence, they charge higher fees and lend out the funds at higher interest rates. But often it's the best way to get additional funds to do renovation projects.
Conventional lenders typically won't fund large 2nd loans. They don't have the risk appetite. But private money lenders do these loans all day long.
Beau's company specializes in 2nd deeds of trust loans. Call him at 925-852-8261 for more information.