A Hard Money Loan is a short-term loan in that commercial property is the collateral. These are used by investors who may not qualify for a traditional loan.
Hard money lenders usually come from a private lender, offering loans at higher interest rates than traditional lenders which can also obtain a higher return on investment.
Hard Money loans are easier to obtain and can get the funds as soon as quickly. Most Real estate investors use hard money loans for different reasons such as:
Bridge loans – Hard money loans can be used to bridge the gap between the purchase of a property and the sale of another property.
Short-term investments – Hard Money loans used to finance short-term real estate projects such as buying and holding rental properties or land development projects.
Investment partnerships – It can also finance joint ventures with other real estate investors, it allows investors to diversify their resources for larger properties or to pursue more complex projects.
It is important to know that hard money loans come with risks, just like any type of loan.
If the borrower is unable to repay the amount the lender has the right to foreclose a property and use it as collateral, which could result in losing your investment.
Always best to discuss with a hard money lender about the terms and conditions to understand them clearly before you proceed and some Hard Money lenders are offering more flexible repayment terms.
It’s always best to consult with a lender that specializes in commercial real estate lending. With the fast closing rate of as long as 2 weeks, you can get your funds in just 48 hours! Century Capital will definitely be here to provide you with the best services. To know everything about Century Capital Reach Victor Cohen at 201-880-7850 ext 102 or send an email at victor@centurycapitalfinance.com
