A hard money loan is one of the real estate financial products you could consider when inquiring for a loan with Real Estate Funding Solutions. This loan is a lot different than most mortgage loans that lenders offer throughout the united states. Most loans for real estate properties are for long term financing, while Hard Money is usually for short term financing where most investors use this money for real estate properties that need rehab or in other words properties that need repairs.
General Concept
A hard money loan is a private money loan. Whereas a traditional real estate loan comes from a bank, this kind of loan comes from an investor. Most people who are interested in this type of loan are the ones who are looking to invest in properties that require collateral against those properties until this short-term loan is paid off or refinanced.
This loan could be used to fix and flips, ground-up construction, and other investment properties. You could also consider this if you’re trying to acquire a commercial property.
How Hard Money LOANS Work
Hard money loans entail a quicker process compared to other loans since lenders do not require investigating borrower’s credit along with other factors that determine financing eligibility. This type of loan has tougher terms including high-interest rates and prepayment penalties; however, it may be still very beneficial for most investors as the money is usually released in just weeks
Your Investment Goal
Hard Money could be a great option based on your investment. Paying high interest for a few months may be beneficial for certain investors while this loan can also be a burden for others. In order to ensure benefiting from Hard Money Loan, you should plan for how you will manage your expenses on the project that you are working on so that the loan is being used for the right purpose.
To ensure profiting the most from this loan, it is crucial to set disbursements and deadlines based on your project plan.
If you have questions regarding the process of hard money loan or other real estate lending products, you can contact one of the mortgage specialists at Real Estate Funding Solutions by sending a message or scheduling a call on www.realestatefundingsolutions.com