What is a Hard Money Loan?
WHAT IS HARD MONEY LENDING?
What exactly is a hard money loan? To put it succinctly, a hard money loan is an alternative for borrowing money and is made available to individuals and companies from private sources. Successful real estate investors in today’s market rely upon hard money lenders and rehab hard money to purchase investment property which allows them to buy and sell / fix and flip properties. Schiliro & Sons Realty funds real estate projects that do not meet bank standards in addition to lending to borrowers who have time constraints.
Hard money loans are creative financing that might not otherwise be available from a conventional lender. While hard money loans are more expensive than traditional loans, they are not based upon traditional credit guidelines. These types of loans are offered by lending companies specializing in a real-estate backed loan. Set apart from traditional lending sources, hard money loans are generally cash loans that are funded by private investors. Because these private investors fund deals that do not conform to bank standards, a hard moneylender has the capacity to close quickly, as terms are more flexible. Although interest rates are higher than traditional loans and totally different from a traditional mortgage, hard moneylenders provide short-term loans that provide funding based on the value of real estate that has been collateralized for the loan.
Generally the investor seeking a hard money loan may be in transition and does not qualify for traditional financing. Hard money loans often refer to a possibly distressed financial situation, such as being in arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring. In the case of Schiliro & Sons Realty, investors are typically Real Estate Developers and investment property owners.
The qualifying criterion for a hard money loan or asset based lending varies in different situations, as well as by the loan purpose. At Schiliro & Sons Realty, borrowers primarily qualify for a loan amount based on the value of the real estate being collateralized.
PRIVATE MONEY FINANCING AVAILABLE
Foreclosure and short sale bridge loan lenders in New York City.
The Premiere Fast Closing Hard Money Lenders in New York.