The requirement for a hard money loan will vary depending on the hard money lender you are applying with. The basic requirements will be the address of the subject property, your contact information, proof of funds if you are using cash as collateral, the address of the collateral real estate (if you are using other investment real estate as collateral), a date by which you need the funds and an amount.
There are hard money lenders who will lend 100% of the funds needed to purchase investment real estate. There are also hard money lenders who will loan the purchase amount, rehab costs, closings costs and down payment.
However, in most situations, this will require that the borrower has another property owned “free and clear” to put up as collateral. Therefore, if you don’t own any real estate, a hard money lender will not lend you 100% of the funds needed to purchase investment real estate regardless of how “great” the deal is.
In some situation, you may be able to present your “great deal” to a hard money lender, and they may offer to become equity partners rather than take the lender position. The terms will differ depending on the situation, but this arrangement may allow the borrower to remain involved in the deal with little resources committed.
Hard money loans are facilitated by hard money lenders. A hard money loan is not the same type of loan as a personal loan. To find a hard money loan simply search “hard money lender” and your city. Another effective way to find a hard money lender is to ask your real estate agent or banker for a referral.
Yes, many hard money lenders lend specifically for foreclosure properties. They also provide services to help their borrowers purchase those foreclosures “at auction” which means they will help their borrowers buy a property that has gone through the legal process of foreclosure and is now at the stage of the foreclosure auction. This process varies from state to state so contact your local hard money lender for detailed answers specific to your state.