Residential Hard Money
The reason why hard money lenders lend residential hard money is not to take on risk, but to earn a return on their money. Hard money lenders want to have their money work for them, and they want to make a return on their investment. Hard money provides investors the benefit of being able to provide added security in the form of a piece of real estate. This is an added benefit when compared to other investments options such as stocks and bonds.
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.
For further information regarding residential hard money and how to begin an application today, contact the professionals at HML Investments today for more information.