What is a hard money loan?

A hard money loan is a loan secured by real estate that does not require the same documentation that to qualify as a conventional loan. A hard money loan is true equity based lending.

Hard money loans are primarily based on the equity in real estate. As a precaution most lenders of hard money loan will only lend up to 75% of the propertie's current value and a good number only lend up 50% of the value of the property.

Hard money loans can be obtained on various types of real estate such as:

• Single Family Residence
• Investment Properties
• Rentals
• Apartment Buildings
• Office Buildings
• Industrial Complexes
• Strip Malls
• and many more...

One of the advantages of a hard money loan is that they can close quickly and the borrower can have his money in as little as 5 business days.

Contrary to popular belief people that use hard money loans are usually higher income earners with lots of assets. A hard money loan is a quick option to access the equity in one's real estate assets.

In other words they are easier to qualify for than a traditional mortgage or home loan.

Uses of hard money loans

While every borrower has his or her own reasons for borrowing here are some of the most common uses for a hard money loan.

• Rehab a fixer upper to flip for a profit
• Remodel or upgrade an existing apartment building
• Purchase another property
• Avoid a foreclosure

Hard Money