Hard Money Loan
A hard money loan is an asset-based loan that uses real estate as collateral, making it a viable option for those with spotty credit.
HARD MONEY LOAN DETAILS
LOAN TO VALUE
50% - 75% LTV
6mo, 12mo, 24mo, and 36mo terms
Rates at 10%+ per year
Weekly, bi-weekly, or monthly payback
What is a hard money loan?
A hard money loan is secured by real property and used primarily in real estate transactions. Hard money lenders are not banks but investors or companies that see value in this potentially risky venture. The loan terms depend mainly on the property value, not the borrower's creditworthiness. Funds can be used for any business operation need.
Uses & Benefits
Working with hard money lenders is fast - unlike conventional mortgages, private investors can offer funding in less than a week, a competitive advantage in real estate-backed funding. They offer an entry point to borrowers with bad credit and look past individual risk indicators due to the collateral property.
Closes more quickly than traditional loans.
Best used for bridge capital.