Tuesday, April 10, 2012

Hard Money Loans

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a specific piece or multiple parcels of real estate. Hard money loans can be issued by individual investors or companies. Interest rates are typically higher than conventional commercial or residential property loans because of the higher risk taken by the lender. Most hard money loans are used for projects lasting from a few months to a few years.

Many people are confused about hard money loans and how to get them.  There are hard money lenders that do not look at credit, income, or repayment. These hard money lenders look at nothing but the property and are typically the most expensive. Other hard money lenders want to truly understand the borrowers exit plan. The hard money lender may even want the borrower to show reasonable ability to repay and make payments on the loan.

Our team has been arranging hard money loans for over a decade. If you need hard money or creative finance solutions, give us a shot.

Dax Dickson
Finance & RE Consulting
Verity Property Solutions
Licensed by NRG
612-578-9898

4 comments:

Nate said...

What Hard Money lenders do you suggest? I am familiar with a couple of Hard Money lenders in the area.

How many Hard Money lenders do you work with?

What are the typical fees and rates the Hard Money lenders you work with charge?

Do you have access to private money loans?

Your Trusted Finance said...

There are many hard money lenders you can use. There are also several local banks that do rehab loans.

It really depends on your personal situation.

Please feel free to call me and we can discuss hard money vs. bank financing for you.

Dax
612-578-9898

Chris from 123homeloans.co.za said...

For people declined at conventional banks due to damaged credit history, hard-money lending can be an option. Unlike banks that process loans for at least a month, these filthy rich lenders can grant you loan much faster. However, as this is a potentially risky business for the lender given that his/her 'private money' is on the line, hard money loans carry higher interest rates than traditional sub-prime loans. A hard-money loan is also backed by a collateral such as your house. If you default on payments, the lender can collect the collateral.

Hardmoney Lenders said...

Hard money lenders should provide hard money loans to their borrowers only based on their assets like house, car etc...But banks prefer to give based on credit scores. Also the interest rates should vary when compared to banking sector with Hardmoney Lenders