A hard money loan is a loan that’s based on the value of the property, not on the borrower’s creditworthiness. Hard money loans are usually short-term loans, lasting from one to five years. They’re typically used for rehabbing properties or for investment purposes. Here are the qualifications you’ll need to get a hard money loan. 1. Good Equity When it’s time to get a hard money loan, the lender will want to see that...

You learn that a co-worker wants to unload a house ASAP. You see the potential to make a good profit by flipping the house. They want a reasonable amount, but you don’t have enough in savings, or strong enough credit, to swing a traditional mortgage. Nor will the other party wait the 6 weeks or more a traditional mortgage process requires. What do you do? The solution could be a hard money loan from a private lender. What Is a Hard Money Lo...

Every now and then, a time may come when you need to apply for either a conventional or hard money loan. If you happen to be one of the approximately 68 million Americans who have poor credit, you may be wondering what to do. This is because it’s practically impossible to get a loan if you have bad credit. Read on to see some tips that can help you improve your credit so that you can get a loan. 1. Pay Your Bills on Time One of the easiest ...

Private hard money lenders are critical people to build relationships with if you work in real estate. For many years, they have played an important role as a financing alternative for real estate investors, particularly those with bad credit or searching for rapid cash for time-sensitive projects. If you’re unfamiliar with hard money, it can be difficult to know where to start. Since not all hard money lenders are similar, it’s essen...

A hard money loan is an alternative type of financial product that’s typically offered by individuals and not banks. Since a hard money loan is secured by real property, this type of loan is generally used in real estate transactions. Below we look at the top reasons why anyone might get a hard money loan if they qualify.   1. Secure Real Estate Property   The top reason for taking out a hard money loan is the acquisition of real ...

What comes to your mind when you want to get a hard money loan? Hard money loans are a form of lending. They are generally unsecured, meaning the borrower does not need to use any asset as collateral. There is no recourse to the lender in case of a default or inability to repay the loan. Hence, individuals often use hard money loans when they have trouble qualifying for standard financing options due to credit scores or other factors unrelated to...