What is a Hard Money Loan and how can it help you?

Many people think of Hard Money Loans, otherwise known as Private Money Loans or Equity Based Loans as a “Sub-prime” product but that is not the case at all. This type of loan is a tool used mostly by Real Estate Investors looking to purchase properties using leverage. These investors come from all walks of life and have very diverse backgrounds. A Hard Money Loan is collateral based and therefore does not depend on credit, it depends on the merit of the project. Credit, previous foreclosures and other loan parameters may have an impact on the fees charged but the investor can still get the loan and do what he or she does best, concentrate on buying and selling properties.

Why does a Hard Money or Private Loan make sense? Truth of the matter is leverage. Even if you have cash to purchase a home for rehab or resale, does it make sense to tie up all of your funds in a property? In some cases maybe, but most of the time investors are looking to purchase multiple properties and need the liquidity to execute when an opportunity comes along. Hard Money Loans can close fast. Depending on the borrower and the project, private money loans can close in as little as five days. What is better is that we have several products that fit different investor requirements and can even help you with funding for trustee sales through our Line of Credit products.

Hard Money is used for Residential, Fix and flip, Bulk Package purchase, Construction, Commercial, Multi-Family, Apartments, Office Buildings, Bridge Funding, Band-aids, Remodeling, and Construction are all loans that we fund every day.