Investing with Hard Money Loans
Category : Hard Money Loans
Many real estate investors face situations where they require more money as compare the traditional lenders lend. At this point of time hard money lenders helps the investors by providing the required amount to the investor.
Hard money lenders are basically private money lender who offer loans for a short term. These loans have a very strict repayment schedule and the interest rate are also high as compare to the bank & financial institute. Hard money lenders also charge fees upfront, ranging between 4 – 10 points. Hard money lenders gives the investors to access the capital that is asset based, wherein the loan amount is secured. The rate of interest ranges between 14 to 18 percent annually and the term of the loan is normally six to twelve months.
Hard money lender may also require credit reports and well as documented experience in previous deals you have done along with the property as security. Further the money lender also perform property inspection before approving the hard money loans.
The terms & conditions for approving real estate investing with hard money loan, may vary for different lenders. The investors have to find the perfect lenders suitable for them, and ensure that they keep a good relationship with them, as such types of loans are useful for procuring or purchasing properties.