Hard Money Information And Tips

When it comes to understanding the difference between hard money loans and private money loans, it’s understandable to have many questions. But fortunately, when it comes to real estate, the two terms are often used similarly. Let’s take a closer look: In the real estate investment industry, a hard money loan refers to a loan that is not regulated by the government or other financial institutions or organizations. When buyers talk about taking out a “private loan”, they are generally referring to a hard money loan. Why Are They Called “Hard Money” Loans?  Unlike traditional conventional loans, which require specific income levels, credit scores and other types of eligibility requirements, hard money loans look at the LTV or “loan to value” ratio. This is the amount of equity that the borrower has in the property. Generally speaking, borrowers can be approved for hard money loans when their LTV is 70% or lower. The lower the LTV, the better, since it demonstrates to poten...

In a crowded, competitive marketplace, nothing says success quite like a commercial real estate loan. It shows that you’ve “made it” and have given your company a strong foundation upon which to further build and branch out. For many businesses, however, getting a traditional loan can be a challenge. These challenges can include issues with refinancing, purchasing and upgrading property and so on. There’s simply too much red tape and too many obstacles – especially in high-traffic areas where commercial real estate is limited and in high demand. So What’s a Business Owner Must Do? A private commercial hard money loan can handle many of the most cumbersome tasks of a traditional loan, but without the associated headaches and deluge of paperwork. With a private money loan , you open up the doors to a wealth of possibilities, including: Short-Term Refinancing If you’re nearing the end of your current loan, refinancing with a “ bridge loan ” like a commercial real estate loan c...