Hard Money ResidentialWhat are Hard Money Real Estate Loans Good For?  Hard money residential lenders serve a wide real estate audience. hard money real estate loans are often used by real estate flippers to buy and rehab properties. Find a Good Hard Money Lender Real Estate Before You Start Shopping For Bargain Real Estate. Remember This: Hard Money is Better Than No Money. One reason so many people choose hard money loans to buy fixer real estate is, hard money loans can close fast. For more information go to: Hard Money Lenders. When a real estate investor finds a property it is quite possible that they are waiting to close on another property and the investment funds are not available. The deal is too good to pass up and the seller is in a hurry to close. If the title is clean a hard money real estate loan can close in ten days or less.
If You are an investor see Hard Money Investor about investing in hard money loans. Hard money residential loans have a considerably higher rate of interest than conventional real estate loans.
But when the deal is right and you do not have a lot of time to close escrow it may be the only loan that will work. If the numbers on the deal make sense, hard money lenders will make the loan.  In many circumstances hard money residential loans are very useful when. • Real estate transactions where a quick escrow is desired. • Distress sales like financial difficulty such as Bankruptcy or foreclosure. • Fixer properties and homes in need of major rehab.
Most conventional and government lenders will not lend on real estate unless the property is in livable condition. This leaves hard money residential lenders or private investors. Buying real estate with hard money loans can make the difference between monetary triumph or failure. See Equity Loans. _____________________________________________ Hard Money residential Lenders are often a small group of private lenders or it may be an individual with money that is willing to take a higher risk to receive a higher yield on her funds. Hard money gets its name because the loans are hard to get and hard to pay back. The loan fees on hard money loans usually run between 5 to 10 points. A point is 1% of the loan amount. One of the primary loan requirements is the borrower’s ability to repay the loan. Borrowers must have the monthly income necessary to service the debt. Hard Money Loans are based on the "Quick-Sale" Value of real estate and improvements.
If they wanted to own property they would just buy it. All lenders want is to make a profit and have their loan repaid as agreed. Nothing More. When you are shopping for Any Loan, take the time to talk to several lenders about rates and terms. Also ask about pre-payment penalties. Pre-payment penalty's can cost as much as six months interest and may have a term of up to five years. For more information Hard Money Loans be sure to check out our other web pages on this real estate site. HARD MONEY RESIDENTIAL: If you run into legal problems, before you hire an attorney watch the videos on this site. Jurisdictionary Watch the FREE Instructional Videos. Left Side Half Way Down...
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Contrary to many people’s beliefs, lenders do not want to foreclose or own the property.