4 Differences Between Hard Money Loans and Traditional Loans

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So it happened: you were turned away for a traditional loan from a banking institution. You’re allowed to be devastated initially. The reality is that many purchases, like those of property, are not possible to make without major loans. But the question for many is how they can obtain those loans after they’ve been denied loans from major financial institutions. In fact, major lenders are not the only options available for fairly sizable loans. There are also private money lenders available. But while we’re all generally aware of traditional loans offered by major financial institutions, we may be less aware of hard money loans, which…
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How a Hard Money Lender Can Benefit You

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hard money lender

Have you been trying to qualify for a mortgage loan but haven’t been able to find the right lender? Hard money lending could be the answer to your worries. A hard money lender works around the traditional loan system to qualify you for a custom loan. The best news? You don’t need a stellar credit score or a large sum of cash to qualify. Hard Money Lending 101 The real estate arena is typically where hard money lending happens. Applicants use a property they’d like to buy as collateral to qualify for the loan. Hard money lenders look at the property value, rather than focusing…
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Need Quick Cash For Your Next Home Flip? Consider Hard Money Loans

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The fast-paced nature of the real estate industry pushes investors to have ready cash to seal the deal. Hard money loans are attractive alternatives to traditional financing options. Conventional bank mortgages involve many bureaucracies and red tape that can sabotage your fix-and-flip deal. On the other hand, hard money lenders provide ready cash with a less stringent approval process. Let’s talk a bit more about why these loans appeal to those in the house-flipping sector.   What is a Hard Money Loan? Getting approved for a loan from traditional lenders can be a painfully slow process. You may have to wait for 45 days or…
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Hard Money Loans: Understanding This Financial Option

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hard money loan

So you’ve been denied your home loan. This can be quite devastating, especially if you were attempting to attain an investment property that would actually benefit your financial situation rather than being to its detriment. Yet countless people are denied home loans each year for a number of different reasons. One of the reasons why this occurs more today than it did even two decades ago is, of course, the 2008 financial crisis. This financial crisis was based in part on the fact that banks were freely giving out loans to whoever applied, and those people were then unable to pay for their loans. This…
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3 Reasons Why You Should Consider Hard Money Loans

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hard money loans

There is a wide variety of reasons why you may someday need a loan. Perhaps the biggest reason why most people end up needing substantial loans, of course, is the pursuit of homeownership. Those who can afford to buy a house upfront without a loan are few and far between to the point that mortgage loans have become something of an industry in the financial world. But the unfortunate reality is that though we all need housing, we aren’t always able to get our hands on the money necessary to buy it. If you don’t want to lose money over time, which renting inevitably does…
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What Is a Hard Money Loan?

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hard money loans

What exactly is a hard money lender? The average person may not be familiar with this type of real estate terminology. Although there are a lot of misconceptions surrounding hard money loans, they can be beneficial options for many people. These types of lenders are essential to the housing market and help individuals get the home loans they need to invest in real estate. What Is a Hard Money Lender? If you are not already aware, there are many different ways to borrow money. There are also several different types of money lenders. To understand a hard money lender, you will first need to understand…
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How Hard Money Loans Can Benefit House Flippers

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what is a hard money loan

If you are looking to acquire real estate, you might be struggling to find a loan that works for you. This is especially true for small buyers and new buyers looking to expand without breaking the bank. Fortunately, hard money loans offer the opportunity to secure a loan for real estate in an affordable and easy-to-understand way. What Is a Hard Money Loan? If you’ve never heard of them before, you may be wondering, “What is a hard money loan?”. A hard money loan differs from other types of loans in that it’s secured by collateral. This means that hard money lenders are less concerned…
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Owner Occupied Loans Are Available for People with Residential Property

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In the United States, 1/3rd of Americans have credit that is poor. Poor credit doesn’t stop you from needing necessary repairs for your home, assistance for your business, or more money to help pay bills that have fallen behind. Luckily, there are institutions that offer hard money loans. If you own your residence and it’s your primary residence, you could get a hard money loan, otherwise known as owner occupied loans, from private money lenders. Hard money loans use the primary residence that is occupied as securing collateral. There are actually two loan programs available, owner-occupied alternative financing loans, and owner-occupied hard money business loans….
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The Main Advantages of Hard Money Loans for Real Estate Investors

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Real estate investors and hard money lenders are two groups of people that are well-acquainted with each other. The opportunity to turn a profit is the glue that keeps them together. Real estate investors are interested in making money they don’t currently possess, while hard money lenders possess cash at-hand that they are willing to lend out and earn interest. It is a well-balanced act that sees both groups make a profit from real estate deals.   A hard money lender, also called a private money lender, is in the business of loaning out hard money and making a profit from the interest charged. Hard…
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Why Most Investors are Running Towards Hard Money Loans

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residential owner occupied loans

Prospective investors often need for substantial loans to finance their projects. However, most of them cannot qualify for bank loans due to poor credit scores. Approximately 33% of Americans have a poor credit score. As such, many investors opt for alternative sources of capital, including the fact that bank loans involve a lengthy process and tedious paperwork.   Today, residential owner occupied loans are gaining favor, and most investors are leaning towards such loans. Hard money loans come from other investors, or individuals and most of them use the property in question as collateral. Hard money allows investors with poor credit scores or those who…
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