Residential Hard Money Lender
As we are talking about the residential hard money lender, its important to note that there are many different types of lenders out there with different goals. There are fewer hard money lenders that deal with residential type properties. Some hard money lenders are going to classify residential as single family up to four-plex, but the majority of hard money lenders are going to classify it just as a single family house. Sometimes duplexes, three plexes, and four plexes are considered residential from a lending perspective on traditional lending, but for a lot of hard money lenders they do not consider it a single family residence. The reason being is that they do have a harder time finding good comparables and are typically valued based on the rents that are being generated making it harder to classify and determine the value of the complexes.
The concept of getting hard money loan for a borrower is for them to be able to purchase a property that cannot be purchased with traditional financing, fix the property up, and resell the property for a profit. The other way a hard money loan can be used from a borrower or an investors perspective is to capitalize on an opportunity in a quick manner. Investors know that deals come fast and you have to be prepared for them. So the concept of the hard money loan is to get the deal done fast so that you can then get long term financing on the property. This being said, hard money lenders are usually referred to as bridge lenders in that they help to fill the gap in between acquiring the property and receiving long term financing under more favorable conditions. Typically hard money lenders are not an end solution, meaning selling the property, refinancing the property or paying it off with other assets that may be coming from somewhere else. If you are an investor looking to finance a non owner occupied loan and have skin in the game, hard money loans are ideal for getting the deal done.
To speak with a residential hard money lender, contact the professionals at HML Investments today to get started on your application.