Hard Money Direct Lenders
Under the umbrella of private financing vehicles, hard money loans are a major player in providing investors the funding they need for they real estate deals. Hard money direct lenders are those that lend their own personal funds in order to earn a return on the loan amount paid by the borrower. Hard money direct lenders are required to due extensive due diligence when assessing a deal, making them a reliable source of funding. The direct lender values prudence in that you can only earn a return on your investment if you invest responsibly, rather than unscrupulously, because you are lending your own personal funds.
Many mortgage brokers claim to be a direct lender, but many of them only act as middle men in a deal, constantly phoning direct lenders and matching them with the borrowers. HML Investments is a hybrid in that they act as both a direct lender and a broker for wealthy individual investors looking to earn a return in the real estate market. With access to large pools of capital, private lenders play a crucial role in the development of the mortgage market, lending to those individual who either cannot acquire a conforming loan or just need a deal funded quickly.
Hard money lenders normally generate their income from points they charge during the escrow process. Income can be generated also from the interest rate being charged on the mortgage, so the hard money lender will charge 11% on the loan and the trust deed investor will get 10%- In this scenario the hard money lender makes 1% spread. Rates are normally between 8%- 12%, points start at 2.5 from the loan amount.
For more information about Hard Money Direct Lenders, contact the specialists at HML Investments today to begin your loan application.