What is a hard money loan?
Hard
money loans, also called private money loans, are just that, loans made
by private individuals rather than lending institutions like a bank or
credit union.
What are the advantages of a hard money loan?
Speed
and flexibility. Banks have lengthy qualification and underwriting
processes. Many real estate investors need cash fast in order to
capitalize on an opportunity. Our loans generally close in less than
two weeks from the time we receive the application. Hard money lenders
generally base their credit decisions on the value of the equity in a
property rather than the credit history of the borrower. This equity
based lending approach gives lenders greater flexibility in the types
of loans they can make and the borrowers they can lend to.
What are the disadvantages?
Hard
money loans are generally more expensive than conventional loans. The
interest rate and fees that hard money lenders charge are higher than
what a bank would charge.
Where will you lend?
We have the resources to provide funding in most US States as well as international.
What types of property will you lend on?
We will lend on all types of property: residential, commercial, land, etc.
What does it take to get a loan approved?
Borrowers
must have a minimum of 35% equity in the property. Said differently,
we will only lend up to 65% of the conservative value of the property.
Also, borrowers must show their ability to repay the loan and must
have a viable exit strategy.
