The real estate market in the first quarter of 2014 showed certain resilience as the economic woes of the United States continued. The average selling price of single family homes remained stable while the multifamily market made some steady if meager gains. Here are a few lessons we learned in this market while we waited for the real estate market to truly recover.

Hard Money Lesson #1: Strike While the Iron is Hot

There are still good deals out there, but they are few and far between. If you find one, it is essential to act on it as soon as possible. In this particular instance, it's a good idea to have funding – private or otherwise – in place before proceeding. Consider using an alternate source for funding such as Hard Money Lenders instead of banks and other traditional lending institutions.

Hard Money Lesson #2: Understand the Deal

In such an uncertain market, all sorts or proposals and representations are made about a real estate deal. Always remember that it is your money that you are investing and that no one will care about it more than you. Understanding the deal is the first step in protecting your investment.

Hard Money Lesson #3: Memorialize Everything

Never forget this lesson whether you are dealing with family, friends or outside investors. When a deal is successful, there is rarely a problem, but an unsuccessful one brings all sorts of recriminations and possibly lawsuits, especially if everyone remembers the details a little differently.

Hard Money Lesson #4: Let an Expert Help

While not infallible, real estate professionals do have a deeper understanding of the markets as they deal with them on a day-to-day basis. In real estate deals involving multifamily properties, many investors find hard money financing easier to obtain than a traditional mortgage. The hard money companies that facilitate these transactions are a wealth of information and expertise.

Hard Money Lesson #5: Have a Backup Plan

One of the keys to wealth generation is always having your money work for you. If you determine that a particular deal is not going to satisfy your financial goals or your risk tolerance, have a definite idea of where you will “park” the funds until a better deal is found. Banks offer one option, but the interest rates are abysmally low. Hard money lenders, on the other hand, may be able to offer you a better rate of return with the same degree of security.