Hard Money Lending Basics for Real Estate Investors
Hard money lenders offer quick and easy funding to those who are looking to purchase a property quickly or refinancing a current investment property. With varying loan programs and flexible loan terms ranging from 6 months to 30 years, hard money lenders can work with you to provide what you need. There is an array of lenders in the hard money industry; the following are the few key components to help you determine what real estate investors should look for.
Quick and Easy Funding
Hard money loans are perfect for real estate investors who are looking to acquire funding quickly and easily. Whether you are up against a contract deadline or don’t want to see a deal go to someone else, hard money lenders can get you funds in as little as 5-7 days. With minimal documentation and flexible loan terms, real estate investors can get the funds they need for their next fix and flip project.
Determining the Value of the Property
Hard money loans are dependent on the value of the property. Hard money lenders use common sense underwriting to determine the value of the property. By using real estate market comparison reports and a broker price opinion, lenders will determine the loan to value of the property. Another factor lenders consider is the risk of the loan and property. This will also determine what loan to value the lender will lend on.
Reasonable Interest Rates
Along with flexible terms, hard money lenders also provide flexible interest rates starting as low as 6.5%. These rates vary according to the type of program you are interested in, but you can be sure you are getting the best rate when you work with a hard money lender. Real estate investors can rest easy when it comes to working with hard money lenders. If you are looking to get a loan funded in days rather than weeks, contact us today to find out how we can make real estate investing easier for you! From our trusted network of business associates to our abundance of experience in the investment industry, we can help you turn a run-of-the-mill deal into an investment steal.