Are Hard Money Loans The Right Fit For You?
Are you an investor planning to purchase property for either residential or commercial real estate? Lack of finances can be an obstacle. Obtaining a hard money loan is a reliable solution for you. This financing is also available for people purchasing land, and it works fast since the collateral for the loan is the property you are purchasing. Read more to determine if a hard money loan is a right fit for you.
What is a Hard Money Loan?
A hard money loan is the financing of property from a private lender, and the security is the property.
How Hard Money Loan Works
Hard money loans work as a bridge or short-term loan for people who require quick financing to either buy, renovate, or develop real estate projects to sell. The private lender will evaluate the property’s value as your collateral and, more specifically, the after-repair value to determine the financing you will get.
Quick And Convenient
Applying for a mortgage will take you a long time, especially with the new mortgage lending laws enacted in the Dodd-Frank Act. Closing a loan might take you months, putting you at risk of losing out on particular property investment. A hard money loan lender can issue funding in a short time. As an investor, this is critical if you’re sponsoring a large-scale development project and can’t afford to miss your timeline.
Since private lenders provide hard money loans, you may have more flexibility in negotiating loan terms. During the underwriting process, you may be able to modify the repayment schedule to your needs and have specific fees, such as the origination fee, decreased or eliminated.
As you procure a hard money loan, your property is the collateral. Other lenders may allow you to use personal assets to secure the loan, such as a retirement account or a home you own.
The interest rates are high.
The loan duration is short.
A hard money loan is a quick financial solution for investors looking to secure a property and development. You may not be qualified for a conventional bank loan, but you can be sure to get finances from a private lender. Visit or call Masters Commercial Capital Group for guidance.