Hard Money Loans

Hard money loans are specialty loan products, only taken on by investors who are willing to invest in high risk loans. The loan to value ratios are low, the interest rates are higher, the points or fees are typically much larger than other mortgage loans, and these types of loans are often due and payable sooner. Natalia Osorio Editor of the “Loan Modification Foreclosure” website — http://www.LoanModificationForeclosures.com — pointed out; “…The financing criteria for a hard money loan is often based exclusively on the value of the collateral which is the property being financed, and no or very little consideration is given to a borrower’s credit. This means that even a person in foreclosure whose credit and credit score has severely declined can qualify for this type of loan if there is a sufficient [...] Continue Reading…

For real estate investors there are numerous benefits and advantages to private real estate money versus hard money loans or mortgage loans to fund your real estate investing business. Knowing the advantages can mean the difference between making a real estate deal work or losing a good deal to your competitors.
As the credit-bubble continues to unwind, traditional sources of real estate financing are drying up and real estate investors need to find alternative sources of capital such as private real estate money.
Advantage #1: Speed and Cash Flow
The ability to close a real estate deal in less than two weeks is a huge advantage over having to wait weeks or even months for a typical bank loan approval. The importance of speed cannot be overstated in a competitive market and quick cash gives you a big [...] Continue Reading…

What is hard money used for?A: Hard money is generally used as a bridge to allow the borrower or property to be brought into compliance with conventional financing guidelines or sold. It is generally a short to medium term solution (1-5 years) and it is used for all types of real estate: commercial, retail, office, industrial, raw land, construction, land development, multi-family, single family homes and manufactured homes.Q: Why would anyone borrow hard money when banks charge lower interest and less fees?A: There are many reasons why a borrower would choose to use private or hard money over less expensive institutional financing, but the following will address the most common uses. Speed of funding is the most common reason — banks typically take a minimum of 45 days to fund a residential loan, 60-90 days to fund a commercial loan, and 120 or more days to fund a construction [...] Continue Reading…

Gold Quest Group www.GoldQuestGroup.net is a hard money lender located in Houston, Texas. A hard money loan is a type of asset-based loan financing in which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing. Many hard money mortgages are made by private investors, generally in their local [...] Continue Reading…

Have you been looking to buy a property for long and it is on sale now. To your disgust you are suffering from insufficiency to fund your dealing. If it is the case with you, then hard money loans can solve your problem. With hard money loan money is lent primarily to help you buy a commercial property. Hard money loan can be borrowed from private firms or even individual lenders. However these are not offered by government agencies.

Lenders disburse the money on the basis of the value of property you are buying. They are never concerned about your credit rating. Even people with CCJs, arrears, bankruptcy etc are eligible for hard money loans. So, it is better to look for a hard money loan instead of a traditional loan when you need a [...] Continue Reading…

In the world of real estate investing, people are always on the look out for different ways to make an investment purchase. Typically the property would simply be bought & mortgaged in the traditional manner but as home values increase and the cost of living rises buyers are seeking out other ways of making the down payment on properties. One way that this can be accomplished is through the use of hard money loans. Now, one must be careful in purchasing with a hard money loan as interest can stack up quickly as most interest rates range between 10 and 16%. In comparison to a normal mortgage this is a fairly high rate. The best way to make this kind of loan work is on a home where the owner is looking for a quick [...] Continue Reading…

Hard money is a staple term in the world of real estate investing. It is also a word that beginners in the business find hard to understand and a form of loan that keeps rehabbers flipping more and more houses without spending a dollar. Hard money is issued by hard money lenders to investors, wholesalers, or rehabbers. Those involved in real estate investing like to use this kind of financing as hard money lenders do not care about the borrower’s credit score. Instead, they look at the deal the borrower wants to close using the money. In short, if the deal is good, the money will come to the deal. This is because hard money is also collateral-based. If the property has a potential to return profits, then you will likely get a loan. Borrowers [...] Continue Reading…

When considering a home purchase you will want to excercise many options other than the traditional lending facilities and these have been known for the highest interest rates. If the traditional mortgage lenders are not able to meet your financial needs, you may consider turning to hard money lenders. By going through hard money lenders, you can close a faster loan and get access to your cash sooner. If you are starting a business, buying a business or you want to upgrade your current business, getting a hard money loan might be perfect for your situation. Many companies offer HARD MONEY LOANS , and if they can’t finance you, you should have no problems finding hard money lenders that will back you and your business. You can finance equipment, commercial real estate, small business [...] Continue Reading…

When you need funding urgently but you can’t wait for weeks to search lenders for traditional loans, you can opt for Hard Money Loan.A hard money loan is a type of borrowing in which a borrower receives loans based on the value of a specific parcel of commercial real estate. This means a loan where the lender approves the loan request by deciding upon the value of and equity in the assets, without spending considerable time traditional lenders spend on documentation and verification of borrower for the same amount of loan. The most important issue in case of hard money loan is that this loan involves much higher interest rate than other categories of loans.Key Features of Hard Money LoanWhile in traditional loans a lender spends considerable amount of money and time on verifying borrower’s credentials, his income, source of income, tax history, credit history etc, in case of [...] Continue Reading…

Difficult to come buy and carrying a high price, Hard Money Loans  are the last resort for those who can afford it.Let’s start with a quick comparison of conventional loans to hard money loans to create a distinction up front.Conventional loans are the tool of most home buyers. Lending institutions loan money to the buyer based on credit history and income. Hard Money Loans are less dependent on credit score and revolve around assets, instead. There should be no confusion that one is a substitute for the other. When buying a house there are many choices in loan options, but the choice between conventional or hard money is not one of them. Hard money loans are for unique, often distressed situations.Hard money comes from private investors who can take the time to assess a borrower’s [...] Continue Reading…