Hard Money – Is it really hard to get?

Hard Money – Is it really hard to get?

Hard money isn’t really hard, rather it is the best option for you to choose if you are looking for a much simpler way to get a loan. Hard money is typically the easiest money to get.

There are hard money lenders that may ask for complete information about the borrowers or a few may get ready to lend the money by just knowing the basics of the borrowers. The assets on which the hard money lenders are lending money on is of utmost importance for the hard money lenders.

They are taking their security based upon the assets, not necessarily based upon the borrowers. That’s where they get the terminology “hard” because they lend money that is based upon the hard assets.

The two most important things that one should know about hard money are:

The hard money loan is not a signature loan:

You say, please give me a signature loan. I have good credit scores, job, work history. I am really going to get a loan without any collateral and there are no hard assets. That’s called a signature loan, where you don’t have anything that you are tying your security to it. That’s not hard money.

That’s something that you should ask your bank to do and your bank is going to look at your credit, job history and all kinds of stuff and they are going to determine based upon you, not based upon your collateral because you don’t have any.

The hard money loan is not a Title loan:

Hard money loan is also NOT a title loan. Typically, a title loan is like if you have a car and your car is clear and you want some money of that. You go, give them your title and they’ll give you some money based upon that. Then, you will pay them off down the road.

That’s the title loan and has nothing to do with hard money loans. Hard money lenders have nothing to do with cars or anything else like that.

That’s kind of the differences when it comes to hard money lenders. There are business hard money lenders and real estate hard money lenders. You will be going to make sure if it’s tied to real estate, then you need to work with a real estate hard money lender.


Getting Comfortable with Hard Money Investing

Many real estate investors overlook hard money loans as a strategy for acquiring property. That’s because these loans are typically used by desperate property owners looking for a way out of the real estate market, rather than into it. But hard money can work for anyone, and it can be particularly useful if you’re a new investor looking to build your portfolio quickly.

Hard money loans can generally be described as high interest loans available to borrowers with any credit rating, as long as they can can provide solid collateral – usually equity in real estate, such as a home. These loans are almost never issued by banks or deposit institutions, but rather by private lenders who specialize in short term lending at high interest.
Normally a home owner in need of a big loan would apply for a second mortgage, using real estate equity as collateral, but bad credit can make things difficult here. If a home owner has missed a few mortgage payments, the banks may refuse to provide more financing – hard money might be the only option in this case.
The limit for hard money loans typically hover at about 60 to 70 per cent of a property’s quick sale value, defined as the price a lender could reasonably expect to realize if the borrower defaulted on the loan, and the property was liquidated fast. The interest rate for a hard money loan is usually in the 15 to 25 per cent range.
Investors can take out hard money loans to buy a property, as long as they provide acceptable collateral – in this case it could even be the property they’re buying. The strategy here is to find a pre-foreclosure property, or any real estate with an owner prepared to sell below below market value as long as the sale is fast. If the investor can re-sell the property at full market value, before too much interest is paid on the hard money loan, he or she can make a significant profit. Hard money loans have helped many successful investors get started in real estate.


California Hard Money Lender – The Ideal Solution and Great Source of Fund for your Real Estate Success

Are you into real estate investing but just having the problem maintaining your funds for its success? Are you having the difficulty in getting the loans that you need just when you’re in time of distress? What will you do if you are unsuccessful in getting funds through a conventional source for your real estate investment? An ideal solution is hard money loan.


Hard money loan is a short-term loan that you can use during situations such as acquisitions, turnarounds, foreclosures, and bankruptcies. Hard money loan is an asset-based loan for a short period. It is a very easy loan to obtain as you don’t need to qualify for the loan; it’s your asset that has to qualify. There are several hard money lenders in California who can help you out.


Today, hard money lenders have emerged as a quick access to the money required from private investors. Hard money lender firms provide funding solutions for homeowners, entrepreneurs, and real estate investors. The best thing about these firms is that they provide customized solutions as per your needs and circumstances and that too in a very fast and effective manner. Thus, these firms help you do away with the strict corporate banking policies, which very often lead to missed opportunities. In addition, since it is a private loan, the terms and agreements can be easily negotiated.


People having a bad credit history, no credit, unverifiable income, and those who have faced home foreclosure can seek the help from California hard money lenders. Although they charge a higher rate of interest than traditional mortgage home lenders, they are very prompt and efficient in providing loans in a very hassle-free way.


If you are planning your business in real estate investment in California and you are tired of hearing NO from banks, then don’t waste any more of your time. Go to a California hard money lender but make sure that you have a good plan for paying back the funds. California hard money lenders will give your business a competitive edge by providing quick funding options and hard money very quickly.


As there are several California hard money lenders, it is not very difficult to seek them out. You can look for them in directories. However, you must be careful in choosing the right California hard money lender to ensure your success. Some lenders may charge very high rate of interest and may not be willing to negotiate the terms and agreements. Remember that all hard money lenders are concerned about getting their loan paid back. So, the feasibility of the deal really matters to them. Hard money lenders take risk only because they expect good return.


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