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Hard Money Loan
Benefits and Features
- Fund loan quickly
- Funded by private investors
- Higher interest rates than conventional loans
- Loan amount is determined by LTV ratio (Loan to Property Value)
Who should use a Hard Money Loan?
Real estate investors choose to use hard money for many different reasons. The main reason is the ability of the hard money lender to fund the loan quickly. Occasionally, hard money loans can be funded within a week. Compare that to the 30 – 45 days it takes to get a bank loan funded. The application process for a hard money loan generally takes a day or two and in some cases, a loan can be approved the same day.
Hard money loans are ideal for situations such as:
- Fix and Flips
- Land Loans
- Construction Loans
- When the Buyer has credit issues.
- When a real estate investor needs to act quickly