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hard money lenders in Mississippi | HardMoneyMan.com LLC

Property rehabilitators and other real estate investors should be well-versed in the workings of equity when it comes to dealing with the hard money lenders in Mississippi. There is a very good reason for this: state regulation on the hard money lending market specifies equity as a form of collateral.

The value of equity on a property is determined by the left over amount of value that can be paid after all of the creditors on a property have been paid off. In order to qualify for a hard money loan in Mississippi, it is usually necessary to own the rights to equity in the property in question.

Offering Equity In The Property To The Hard Money Lenders In Mississippi

If you are the owner of the land on which the property you would like to rehabilitate using money borrowed from the Mississippi hard money lenders is situated, then you subsequently have rights to the equity of the property. However, there are situations in which you can sign away that equity, such as through other, existing loans that are tied to the property in question.

In general, hard money lenders in this state are looking for you to hold at least 40% equity in the property you wish to invest in. This is the minimum amount that you should be able to prove in order to have your application for a hard money loan approved.

Alternative Options To Equity In The Property

In certain cases, it is possible for investors to offer hard money lenders equity in a different property as collateral for a hard money loan. This may seem like an overly complicated solution, but it is one that is regularly used in the Mississippi market, and to great effect.

hard money lenders in Mississippi | HardMoneyMan.com LLC

If you have already taken out a loan on a property in order to begin your construction project, for example, then you may not have equity left on it to use as collateral for the hard money loan you need. When this happens, it is possible to offer equity on another property tied into the value of the property itself as collateral to the hard money lenders in Mississippi.