A hard money loan is considered cash by most Sellers, making these loans perfect for real estate investors looking to purchase properties quickly to beat competition.
Hard money loans are a great option for real estate investors who need to close on a property quickly, fund a renovation project, or both! Basic Facts: Short-terms Depend on the after repair value of a property rather than a borrower's credit score Fund projects from $50,000 to more than $10 million Fund deals within 48 hours of a completed application
Hard money loans are short-term loans for real estate investors. Using equity in other properties, or the investment property itself to secure the loan, hard money loans are typically used for a 5-12 month period to fund property acquisition, renovation costs, or both. As opposed to a conventional loan from a bank, a hard money loan is not contingent on the borrower's credit, but rather on the after repair value (ARV) of the investment property.