Here are the Answers to Your Hard Money Loan Questions
Hard money loans are commonly used within the realm of real estate investment but they come across as more confusing than they actually are. There are still many people with hard money loan questions. So let’s start with the basics. What is a hard money loan?
What is a hard money loan?
Hard money loans may seem difficult to get approved for but that is actually not the case. It is very simple to deal with hard money lenders to fund your property investment. Hard money loans are designed to work for the short-term investments.
Hard money lenders are no different than a bank because they in essence do what banks do, they lend money. The difference is that they finance quickly and they do not have the strict regulations that conventional lenders do. These loans are generally short-term loans and, because their rates are higher than conventional lenders, they are meant for short-term projects. Hard money lenders are legitimate businesses which are run as LLCs, S Corps or Sole Proprietorships with a business structure and specific investment strategies.
How do hard money loans work?
Hard money loans are typically used by house flippers and real estate investors to fund an investment property. It can be difficult to obtain these kinds of loans from banks due to their strict regulations. However, hard money loans are based on the market value of the property, equity, and income of the borrower.
How long does it take to get a hard money loan?
It’s not as hard as you may think. While the interest rates for hard money loans may be higher, it is much easier to be approved for the loan and you can have your money in a matter of days. B This fast pace is ideal for real estate investors who are interested in house-flipping. When working with a hard money lender, you will find that flexibility and communication are two important aspects.
What can I finance with a hard money loan?
House flippers and developers are the blood of the hard money business. Because the loans can be approved so quickly, the borrower can quickly purchase the property and make the repairs in a timely fashion. When it comes to house-flipping, it is important for the borrower to factor in all of the repairs and refurbishing that is required before selling.
Where can I get a hard money loan?
HML Investments specializes in hard money loans for your property investment and we lend money in California and Nevada only. These states are close to one another and it’s easier for us to travel to look at the properties.
When it comes to speed, efficiency, communication and support, HML Investments may be the partner you’re looking for.