Hard Money 24/7

Getting a hard money loan for real estate is appropriate in a variety of situations for both residential and commercial real estate investors. As a real estate investor, if you find yourself in a scenario where traditional financial sources of funding are restrictive or difficult to get, then hard money loans might be the best alternative for your specific needs.

Due to the recent credit crisis, most of the traditional financing sources for real estate investors like banks and mortgage lenders have tightened their lending guidelines. All most all the lenders’ and banks’ guidelines have, as a matter of fact, become extremely restrictive and difficult to qualify for. But at the same time, investors in real estate are finding great deals all around the country due to the current downturn in economy and real estate values. The unprecedented number of foreclosure and bank reo homes offering great equity and investment potential are increasingly turning investors towards real estate hard money lenders.

For real estate investors looking to either acquire or rehabilitate or buy from a foreclosure auction or short-sale, then there is no option but to opt for a collateralized real estate hard money loan. Investors will find the terms of hard money loans to be generally flexible and accommodating towards their investment plans and time lines. The guidelines for real estate hard money loans usually accept all forms of residential real estate properties like single-family, multi-family homes and commercial real estate properties like apartment buildings, offices, motels, hotels and industrial facilities

Advantages of Real Estate Hard Money Loans:

• Quick Closing – Hard Money Loans  close very fast provided you meet the lending guidelines
• Big Loan Amounts – The loan amounts can be really large depending on the value of the underlying collateral
• Flexible Terms – Most of the loan terms can be negotiated and adjusted to suit your investment scenario
• Minimal Documentation – The required documents are quite minimal as the lenders only concern themselves with the collateral supporting the loan
• All Credit Types – Good credit helps, but even investors with blemished credit can also secure bad credit hard money loans
• All Property Types & Conditions – All types of residential and commercial properties in all sorts of conditions can be financed provided they have enough equity

Disadvantages of Real Estate Hard Money Loans:

• Short Term – Most of the hard money loans collateralized with real estate have really short loan terms. They rarely stretch beyond a year
• High Interest Rates – Interest rates on hard money loans typically range anywhere from 8% to 20%
• High Closing Points / Prepayment Penalties – Most loans carry upfront points at closing and also pre-payment penalties that range from 4% – 8%