Hard Money Lending vs House Hacking

Hard money lending is a form of asset-based lending where the loan is secured by the property itself. Unlike traditional bank loans, hard money lenders focus on the value of the property rather than the borrower's credit score. These loans are typically short-term (6-12 months) and carry high interest rates and points. It is a lucrative strategy for investors with significant capital who want to e...

House hacking involves purchasing a multi-family property (2-4 units) or a single-family home with extra rooms, living in one part, and renting out the others. This strategy is the gold standard for beginners because it allows you to utilize FHA or conventional owner-occupant financing, which requires significantly lower down payments than investment properties. By having tenants cover the majorit...