Hard Money Loans
A hard money loan is a short-term, asset-based loan, typically secured by real estate, and issued by private lenders or investment groups rather than traditional banks.
Real estate investors use these loans to purchase, improve a property or refinance a loan.
These loans are also used by:
- Owner - occupied (owners who live in their home) are considered.
- Owner - occupied borrowers who live in their home and are using the funds from the loan for a business purpose, such as to start or expand a home business.
Hard money loans are:
- Short-term: These loans are designed to be paid back quickly, typically ranging from a few months to a few years (e.g., 6-36 months)
- Asset-based: The loan approval is primarily based on the value of the collateral (usually the property itself), rather than the borrower's credit history and income.
- They carry higher risk and higher cost: Due to the faster approval process and less stringent underwriting compared to traditional mortgages, hard money loans typically come with higher interest rates and fees.
- These loans are issued by Private Lenders: Hard money lenders are usually private individuals or companies specializing in this type of financing, unlike traditional banks or credit unions.
Common Uses: Hard money loans are popular among real estate investors, especially those involved in:
- Fix-and-flip projects: Buying properties, renovating them, and quickly reselling them for a profit.
- Bridge financing: Providing temporary funding until a longer-term loan or sale can be finalized.
- Acquiring distressed properties or those with unique characteristics that might not qualify for traditional loans.
- Land acquisition and development.
Commercial property deals.
Key differences from traditional mortgages:
- Speed: Hard money loans are known for quick approval and funding, often within days or weeks, compared to the weeks or months for traditional mortgages.
- Approval Criteria: Hard money lenders prioritize the property's value and potential, while traditional lenders focus more on the borrower's credit score, income, and debt-to-income ratio.
- Interest Rates: Hard money loans generally have higher interest rates (e.g., 8-15%) compared to traditional mortgages.
- Repayment Terms: Hard money loans have shorter repayment periods, usually six months to a few years, compared to 15-30 years for traditional mortgages.
- Down Payment: Hard money loans often require a larger down payment (typically 20-35%) than traditional mortgages if you are purchasing a property.
- Regulation: Hard money lenders are not subject to the same strict regulations as traditional lenders.
HIGHLIGHTS:
- Quotes Within 2-4 Hours
- Funding Within 5-7 Days
- Loan Amounts - $100,000 - $5,000,000
- 1st, 2nd, 3rd Position Loans
- Owner and Non-Owner Occupied Rental Property
- No Application Fee
- No Upfront Cost
EASY TO QUALIFY!
- No Income Documents
- No Bank Statements
- No Tax Returns
- No Appraisals
- Bad Credit Ok
- Currently in Foreclosure Ok
Click the button below to fill out the form and submit it.
I can get you a quote usually within 2-4 hours and the loan can close within 5-10 business days.
** Note that the property must be located in California.
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I ALSO BUY PROPERTIES FOR CASH IN THE CASE WHERE A LOAN DOES NOT WORK
• I buy properties from homeowners who need to sell quickly for various reasons
• I buy properties for cash or I take over the loan, paying back payments if any, to bring the loan current
• I give cash to the homeowner for part of their equity
• The homeowner makes no repairs (the property is purchased as is)
• The homeowner pays no sales commission or closing costs __________________________________________________________________________________________________________________________________________________________________________________
Call, text or email me and I will do my best to help you!
Cheryl Gollnick (951) 318-6420
