Are you looking for a fast and easy way to get funding for your next real estate project?
It’s hard to get a loan when you don’t have perfect credit. Also, traditional lenders are not always willing to lend money if the property you are buying does not meet their defined lending criteria.
It can be incredibly frustrating because you may need money in a hurry to grow your business. Hard money lenders can help. Let us dive in and understand what hard money lending is.
Hard money lending is a short-term real estate loan obtained from private investors or individuals at rates higher than a traditional lender based on the value of the property instead of the borrower’s creditworthiness.
If a traditional mortgage does not work, there are many financial options available to you to draw down credit and get access to the cash you need. One of the more popular options is a hard money loan. Loans are quick, secured by that property, and comparatively easy to get if you have property.
A hard money loan is a type of loan secured by real property. The loan is based on the property, meaning that the borrower’s creditworthiness is not what is taken into account when making a hard money loan offer.
As such, the value of the real property determines the amount of money you can borrow. Hard money loans are a form of secured loan, so you have to have financial access to the asset. Don’t use hard money loans for long-term financing. Use them primarily for short-term funding, typically for no more than a year before you should fully pay it back. A hard money loan is used on an investment property or to purchase an investment property.
Hard money loans are also known as “secured loans” since they are tied to a specific asset, namely a piece of real estate. As such, you can’t get a hard money loan without owning a piece of real estate. Fortunately, hard money loans are relatively common for real estate investment.
Hard money loans are beneficial and flexible methods of acquiring the funding you need.