Typically the interest rate on a hard money loan will range from 12% - 18% (a little less for bridge loans, which are similar, but not necessarily used in times of financial hardship), which means that you probably don't want to look to hard money loans as sources of long term financing. In fact, the term is often fairly short.
Normally the most happening thing is at the time when banks actually bid what is owed when it comes to foreclosure sale.
That is not always the case and nothing is hard and fast but most of them do, which basically means the properties are going to go back to the bank, and we are seeing that probably more than 98% of the time that property is actually going back to the bank.
Here comes your chance to get hard money loans and invest in an opportunity for you to actually contacting the bank or the Asset Manager, and in case the present owner of that property after foreclosure activity.
Keeping the whole scenario in your mind you get in touch with that Asset Manager and see if you can purchase the property before they put it over the market. It is easy for you to do such offer with the aid of hard money loans by some reliable hard money lender.
When you do that you want to give them comparables and show what property is really worth and see what you can put together for them to actually make that happen.
If that doesnt work out the next thing you want to do is watch the property to get listed with an agent. You know that may take some time. You are going to watch it to get listed with an agent.