Posts Categorized: Hard Money Tips

Hard money loans offer a financing option for real estate investors, particularly those navigating situations where traditional lenders might hesitate. However, securing a hard money loan requires understanding key factors influencing its approval and terms. Among these factors, the loan-to-value (LTV) ratio is a critical piece of the puzzle. Let’s understand the concept of LTV and its significance in hard money loans. What Is the Loan-to-Value (LTV) Ratio? The LTV ratio is a metric that compares the amount of money you borrow (the loan amount) to the appraised value of the property serving as collateral for the loan. It’s expressed as a percentage. For example,…
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In the ever-evolving landscape of real estate, navigating the intricate web of property investments requires a keen understanding of the financial tools at your disposal. One such tool that has been gaining traction for its versatility and potential benefits is the non-owner-occupied loan. Buckle up as we explore the untapped potential and perks of this financial instrument, unraveling the secrets that savvy investors have been leveraging to propel their real estate ventures to new heights. Unlocking Higher Income Potential Imagine you’ve identified a promising real estate opportunity, but your current funds fall short. This is where non-owner-occupied loans swoop in as the hero of your…
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Private investors or companies offer hard money loans based on real estate collateral. While these loans are perfect for people who need fast access to funds, the loan amount or tenure is generally not fixed. Read on to learn how lenders calculate hard money loans and their tenure. How Do Hard Money Loans Work? To qualify for a hard money loan, you must have a property you can use as collateral. Lenders will use the property as collateral, so the property must have enough value to cover the loan amount. And while credit scores may not be the main focus for hard money lenders, they’ll…
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Getting approved for a loan isn’t easy for someone with poor credit. Luckily, hard money loan lenders are available to help. Hard money loans come in handy for a variety of reasons. They’re easier to qualify for than traditional loans, often require less paperwork, and you can receive funding quickly. Read on to see what you can expect from applying for these loans. Loan Ratios Hard money loan-to-value ratios tend to hover at around 60-70% of the current appraised value of the property. This ratio means that you’ll need to come up with the rest of the money for closing costs and any additional fees…
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Poor credit can be hard to deal with, but it shouldn’t stop you from living your life. The good news is that it’s still possible to get a private loan with poor credit. At ARC Private Lending, we work hard so you can get funding. However, even if you know where to get funding, you may still have some important questions. With that in mind, here are some of the most frequently asked questions we receive about private loans and the answers you need to know. What Is a Hard Money Loan? A hard money loan is a loan from a private lender rather than…
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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 have some “skin in the game.” In other words, they’ll want to see that you have some equity in the property. Equity is the portion of the property’s value that…
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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 Loan? It’s called a hard money loan because it’s secured by a hard asset: the property itself. These are non-bank loans permitting real…
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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 ways in which you can improve your credit and form a good habit while at it…
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