Residential Hard Money Loans
Need fast hard money to close a real estate transaction quickly? Have you thought about hard money loans? Hard money lenders are private lenders offering collateral based loans generally backed up by the value of the property being purchased. Hard money loans can close much quicker compared to bank based loans, enabling quicker real estate transactions. Sometimes termed residential hard money, hard money loans offer a way for real estate investors to act quickly on properties they are ready to make a deal on. Bank loans take on average a month to close. Sometime real estate deals need to be resolved quickly to provide the most benefit to sellers. Below are some facts regarding hard money lending:
- Hard money lenders usually can close much quicker than bank lenders
- Hard money loans are mostly shorter term loans 1 month to 10 years, and have roughly double the annual % rate interest compared to bank loans.
- Hard money loans are based on the collateral (property) being purchased rather than the credit scores and financial status of the buyer.
- Hard money loans are great for bridging investment property purchases that need rehab. Once the rehab is complete, a typical bank mortgage can be obtained to pay off the hard money loan.
- Hard money loans are for the borrower that needs to resolve a problem quickly. For example, purchasing a foreclosure for investment, flipping a home, or rehabbing an investment home.
Next time you need money quick for a real estate transaction, why not check out hard money lenders in your area. They provide a quick means for closure, enabling investors to potentially beat out other bidders on investment property.