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 owns or the property that you are planning to acquire. The primary concern for hard money lenders is the value of the property, not the borrower’s credit.

Borrowers who are not able to get conventional financing because of recent foreclosures can still apply for the hard money loans. But they should have sufficient equity in the property that they are going to use as collateral for the loan amount. You can get the hard money loan on almost any type of property such as:

• Single-family Residential
• Commercial
• Industrial
• Multi-family residential, and land

Some of the money lenders are specialized in one particular property type such as land loans but can’t handle residential loans just because they don’t have experience in that area. Make sure you ask your local hard money lenders about which type of loans they are specialized and able to do.

These loans are appropriate for almost every deal. It is a source of financing when you are not getting any response from banks, or you need a loan quickly. Hard money loan is ideal for situations like:

• A buyer having credit issues
• Fix and Flips
• Real estate investor has to act soon
• Construction loans
• Land loans

As a real estate investors, you may have to need money for many reasons. The primary ability of hard money lender is to fund her loan quickly as compared to banks. At CCM-Finance, you will get better advice and services whenever you are in need of hard money loan.