A private hard money loan is simply a short-term loan secured by real estate. They are funded by us private investors (or a fund of investors) as opposed to conventional lenders, such as banks, or credit unions.
The terms are usually around 3-6 months BUT, on certain special circumstances, the loan term can be extended to longer terms of 1 year. This is rare though. Hard money loan requires monthly payments of only interest, or interest and some principal with a balloon payment at the end of the loan term.
Important, due to the extra rules and regulations required by Dodd-Frank, we do not lend to owner-occupied residential properties. Only for investors who need quick CASH for:
OUR 4 MAIN PRIVATE MONEY LENDING REQUIREMENTS.
1. Down Payment / Equity.
The main requirement for obtaining a hard money loan is having the necessary down payment, or equity in the property to serve as collateral for the loan.
2. Cash Reserves / Overall Financial Strength.
3. Exit Strategy / Experience in Real Estate.
4. New Borrower / Repeat, AND over all reputation amongs your peers.
Ranges from 13 – 20% depending on the perceived risk of the loan.
Points can range anywhere from 2 – 4% of the total amount loaned.
Call us today and start your private money loan process. 480-217-7440