Why A Real Estate Investor May Need A Hard Money Loan

A hard money loan is a specific type of asset-based loan that comes from a non-bank source of financing and typically issued by private investors or companies.  Here are some advantages where a hard money loan can be the ideal type of financing for a seasoned real estate investor or novice: Faster Real Estate Transactions vs. Bank Financing: Good real estate deals don’t wait for bank financing. These opportunities usually have investors lined up to purchase these properties & most of the time they have cash. In these situations, a real estate loan may be needed very quickly & banks are not known to move at warp speed.  It can take weeks or longer until the borrower receives an approval.  A hard money loan can be funded as quickly as 5 business days & save the deal for the borrower.   Bad Credit: Borrowers who can’t get conventional financing due to a recent foreclosure or short sale can still obtain a hard money loan.  Banks focus on the borrower’s credit & income.  Hard money lenders primarily focus on the value … Read More