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What is a hard money loan?


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Answered 2007-09-07 16:34:57

A hard money loan is a "Specific type of loan where a borrower takes funds based on the value of undeveloped real estate. Hard money loans are usually issued at higher interest rates than commercial mortgages." according to sites like http://www.hardmoneyworldwide.com/

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Related Questions

Can you change your loan from a hard money loan back to a convetional loan?

refinance the hard money loan back to a conventional bank loan


A person who loans money?

there are several kinds of people who loan money. There are banks that loan, investors that invest, private money lenders who loan, hard money lenders etc.


What do you need to know about hard money loan?

a hard money loan requires a fairly high up front fee, and has a high interest rate.


How do you use hard money in a sentence?

The investor gave hard money to the farmers. Hard money is a type of loan given by private contractors.


What is a private hard money lender?

A Private hard money lender is what is considered to be a loan shark. This should be your very last resort in obtaining a loan. It is a very risky entitity to get involved with a loan shark.


What do hard money lenders do?

A hard money lender is the person who offers you money loan which is actually an asset-based loan financing. The process is usually about the borrower acquiring funds that are secured by real property.


What is meant be commercial hard money loans?

Commercial hard money loan is a type of private funding for the people who need immediate finance to buy a property or close a land deal. Hard Money Commercial Loans is of great help for the people who are unable to meet the standard banking criteria, but has real estate and or assets that are sufficient to collateralize the loan to the investors/lenders.


How much higher is the interest rate from a hard money lender if you can't get a loan from a traditional bank?

The interest rate on a hard money loan is substantially higher than that of a traditional bank loan because they do not conform to the traditional banking standards. Hard money loans tend to be used for short term uses from real estate investors who plan to not carry the loan for very long.


How can you find an investor to loan you money for a house?

look for private money lenders or hard money lenders on the internet.


What are the risks associated with a hard money loan?

The risks associated with a hard money loan is that you have to pay 10-15 percent more. The second is, that you are really in troubles, if you lose your job, because you still have to pay monthly!


How does a hard money lender make his profits?

A hard money lender provides a short term loan with a high interest rate and fees. Further a hard money lender will only lend if in an equity position.


What are the requirements for commercial hard money loans?

A commercial hard money loan is a loan based off the quick-sale price of a commercial property. The main requirement would be that the person applying, own the property that would be put up as collateral.


What is loan renewal?

a loan renewal is a loan you already have and you need more money so you renew the that loan for more money


Do you loan hard money I am looking at a foreclosure property and would like to flip it?

We lend in TX only.


Find a Hard Money Lender?

form_title=Find a Hard Money Lender form_header=Use real estate as collateral for a short-term loan. What is the amount that you are seeking for a loan?=_ What type of property do you have?=_ Do you have any prior experience investing in distressed real estate assets?= () Yes () No


What are the benefits of a private hard money lender?

Private, hard money lenders can be a benefit in that they may be able to provide you a loan if you have credit so low that mainstream lenders won't take a risk on you.


How can one avoid being trapped by a loan shark?

If you are trying to avoid being trapped by a loan shark you should not borrow money. Today loan sharks are not as prevalent they are now known as payday loan companies. Once you get suckered in it is hard to get out.


What is a non purchase money loan?

A purchase money loan is a loan usually used to buy a home. A non purchase money loan is a loan for other reasons where the lender does not know what is being bought.


Does a hard money lender require a credit check or income verification?

johni:No.the loan is based on the lendees assets.


Is there any hard money lender who can give loan with bad credit history?

It's called a pawn shop.


How do you start a Cash or Hard Loan Business?

A hard money loan is a specific type of asset-based loan financing in which a borrower receives funds based on the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and not yet qualifying for traditional financing. Whereas hard money often refers to not only an asset-based loan with a high interest rate, but can signify a distressed financial situation such as arrears on the existing mortgage or bankruptcy and foreclosure proceedings are occurring. Begin your search online via google or yahoo.


What type of bank should I use when getting a commercial hard money loan?

There is a wide variety of hard money lenders out there. The best choice would be to choose a large company or bank so you can be guaranteed the amount you are looking for. It also allows for more flexibility for repayment. You should first check with your local bank to see if they are able to give you a hard money loan. If they are not able to, then check with a Credit Union.


Where can you get a loan for small businesses?

Your local bank should be the first option to get the personal or business loan. However, you can also opt for Hard Money Loans to get the funding instantly in less hassle and documentation. Additionally, the hard money lenders can provide you the desired amount of loan in much lesser time and effort.


How can you get a money loan?

wat type of money loan u want to take there are so many different criteria to get loan.


What is difference between loan and debt?

loan is money borrowed and debt is money owed. :-)