True Story About Hard Money Lenders

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Who  are they? What is it?  How do I get some?  Is it beneficial?  Let me share with you  some of the basic principals about hard money lenders.
When money is discussed between investors, it  is considered to either be "soft" or "hard".
Hard money, on the other hand, is just the opposite.
Not in that it's more difficult to obtain, but the terms  are very specific and much more strict.
This is why hard  money is also referred to as "private money".
So their first priority is to protect their investment capital.
If it were your money, you would want the same.
It used to be that hard money lenders would lend  solely based upon the deal or property at hand.
Now, you will find that many hard money lenders, if they want  to stay in business, require more than just equity to qualify.
Consumer protection laws, time consuming  and expensive court procedures, and so on have forced some hard money lenders  to become even harsher when applying for a loan.
Here are some of the  terms you can expect to see.
This means that a hard money lender can loan you up to  70% of what the home is worth in repaired condition.


Other terms you can expect are high interest rates.
Many times these  rates vary depending on your credit score and experience.
Typically hard money lenders will  charge anywhere from 2-10 points.
So charging 1 point on a $100,000 loan would be $1000.


Other things to consider are how quickly funds will be available.
Your ability to get access  to money quickly can make all the difference.
You also need to be  aware of pre-payment penalties.
Try to avoid pre-payment penalties.
Again, it's all about protecting their assets.
Again it all depends on whom you deal with.
Investors also use hard money when they need to purchase quickly.
Sometimes that is  to long.
Most like to call it "Nothing Down".
Sure it will cost you money to borrow  that money, but the rewards out way the expense.
It could be your next door neighbor.
You can also call a title company or a real estate agency.
Shop around until you find the best  one that will fit your needs.
Some will lend nationwide - these typically want a credit check.


To receive a free list of hard money lenders who will lend nationwide please visit  Free  Hard Money Lender List.