Hard Money Loans
Hard money loans are the common loans that preferable by property investors. Seek it from real estate investor group, this is a good place and network to contact with other investors and sharing your experience with others regarding the deal with hard money. Your real estate broker might be a loan representative, or they may introduce some sources of getting the loan for you. And you may find it your self through internet or banks.
Normally investors will look for these loans when the banks and mortgage companies can not help them in traditional loans. The interest of these loan is much higher than ordinary loans but their guidelines are often significantly more liberal, allowing investors to obtain specialized terms and loan amount.
Cause of the high interest rate, choosing the right lender with favorable term ans rate become the most important part for taking these loans. The spectrum of the interest rate for the loan can be very broad, and it's vary among hard money lenders. Some lenders amortize their loan using interest-only-schedule, this will enable the payments remain lower than traditional loans.
Beside seeking for lower interest rate, try to bargain with hard money lender about the financial costs and charges. All these things will significantly affect your profits made from the property.
Spending some times to research related information before meet up with brokers / lenders. Equip your self before starting the deal. Many useful information and tips can be found from internet, friends who has such experience.
For your information, they are not lending 100% according to the value of the property. Maximum lending range is around 65% only, therefore be sure you have sufficient fund to place as deposit.
For more information about home loan, please review
Home Loan Guide instead Hard Money Loans
Business Loan Guide
for more business loan advice and tips.
Return to Loan-God Home Page
Return to top of the page