A Hard Money Loan is an asset based commercial loan that can be used for land, commercial and single-family investment properties. It is designed to provide a source of financing for borrowers that have substantial equity in their property but may not meet traditional bank guidelines. As a result, the loans tend to be the most flexible.
Hard money is your source of financing when banks are not an option, or the loan is needed for a short period of time. Hard money loans are ideal for situations such as: When the Buyer has credit issues or when a real estate investor needs to act quickly and has equity to work with. Hard money is a way for real estate investors and entrepreneurs to borrow without using traditional mortgage lenders for opportunities such as House Flipping, Rental Properties, Cash out on Non-Homestead Real Estate, Renovations or expansions, Construction, Multi-Family or Commercial Properties.
Borrower: May be an individual or a company
Max Loan to Value: 70%
Term: 6 to 24 months with interest only payments due monthly
Loan amounts: $100,000 to $1,500,000
Rate:12-14%