Everything You Should Know About Hard Money Loans
When you hear the phrase, “hard money loans” what’s the first thing that comes to your mind? A person who works in dark alleys, charging sky-high interest rates over the loan amount? Well luckily, such types of hard money lenders don’t exist in today’s market. Still, if you think that real estate investment could be risker with hard money loans, then you haven’t utilized the services of the reputable money lender. In simple terms, hard money loan is a short-term loan that real estate business person use to secure their projects. They are funded by private investors team, not by credit unions or banks. Usually, they are carried for about 12 months, which can be extended to 2 to 5 years, depending upon the loan amount. You need to pay only interest, or interest and some principal amount every month, with a balloon payment when the loan term ends. The money that your money lender will lend you depends upon the value of the subjected property. It can any, the one you already o...