866-461-2695 ken@hardmoneyman.com

Unless you’re a builder, property flipper or rehabilitator, landlord, or real estate investor, it’s likely you haven’t heard of hard money lending. That’s because hard money lenders like us only deal with those who make their career in such fields, and these types of loans work differently than a regular loan for inhabitants. These types of loans are typically secured with property rather than your credit score, and can hugely benefit those who know they can purchase a property with the intention of quickly turning it for a profit, even if you still aren’t able to get a standard mortgage.

Because these are special types of loans, the rates for them tend to be more expensive than traditional loans. We are able to overlook things such as dings on your credit report and make loans that the banks typically won’t. This is due to the fact that we loan based on the value of the property itself rather than you, the borrower, and your financial situation.

Simply put, a hard money loan is a short-term loan secured by real estate. In general, we offer terms of 12 to 36 months; however, we do also have long term options for those seeking them as well. The amounts for loans are primarily based on the value of the property in question.

Types Of Property Accepted

Because our loans are for a special type of customer, it is important to note that we do not deal with loans on owner-occupied residential properties or payday loans – we very strictly deal with loans for business purposes made to an LLC or Corporation. Due to this, a hard money loan may not be appropriate for all deals, and it is crucial to be up front with us when discussing your plans for the property so we can help as much as possible. If a deal can be made, we can be your source of financing when banks aren’t an option, or you need the loan secured within a short period of time. For more clarification, hard money loans are perfect for these situations:

  • Construction Loans
  • Land Loans
  • Fix and Flips
  • When a real estate investor needs to be able to act quickly, or
  • When you’re a buyer with credit issues.

Rates?

We mentioned before that the interest rate for these loans are a bit more expensive than traditional loans; this is due to the higher risk we take with our loans. Quite like traditional loans, however, the rates for these loans will vary from area to area. When considering this type of loan, it’s important to remember that – though we are not so concerned about your personal credit history – we do have to consider your plans for the property. Having a reasonable plan showing how you plan to ultimately pay off the loan to present to us will ensure we are able to get you the best deal and loan plan to fit your project.