An Overview of Hard Money Loans and What They’re Used For

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There are a number of loans available in everyday life. These include student loans, business loans, auto loans, and construction loans, just to name a few. One type of loan that can be obtained is known as a hard money loan. Unlike some loans, which are based on credit, hard money loans are based on property assets; the name of the loan is based on a term coined in the 1950s. Hard money loans are a type of private loan that are often obtained when someone wishes to fix and “flip” a property. This article will provide a basic overview of hard money loans and what they’re used for.

  • Hard Money Loans are Secured by Real Estate: As mentioned earlier, hard money loans are secured by real estate instead of any other form of credit. What this means is, real estate is placed as collateral in return for receiving a loan. While this allows for a loan to be secured relatively quickly, it also means your real estate is at risk of being taken as payment if the loan is not paid back on

A Beginner’s Guide to Hard Money Loans

Written by admin. Posted in Hard money lender, Hard money lenders, How does a hard money loan work

Hard money loans

As the saying goes, “You have to have money to make money.” There are variety of ways that entrepreneurs collect the cash needed to run and grow their businesses. This is especially true in the real estate development world, where the investments needed to acquire real estate is rather large. Borrowers may collect funding from banks, mortgage companies, or private parties. Among this list, private party hard money lenders have substantially grown in popularity recently.

While hard money loan rates are generally higher than traditional loans, there are benefits to using hard money loans that make them attractive to business owners who are looking to raise funding for a property investment, or to acquire a similar large asset. In example, borrowers who do not qualify for banking mortgage loans because