FL Hard Equity | Hudson Debt Consolidation
How Hard Equity (Hard Money) Loans Work
A hard money loan is a short-term loan that is funded by private investors. Unlike regular loans, which are typically funded by banks, these loans are an alternative that is ideal for individuals who don’t want to impact their credit. Hard money loans are secured by property, not credit history. People seeking a hard money loan receive an amount of money determined by the value of their property, not their credit score.
Hard money loans are short-term, lasting around 12 months, with the longest options lasting two to five years. With a hard money loan, individuals make monthly payments of interest, and potentially a percentage of the principal, depending on the requests of the private investors.
Borrowers can receive a hard money loan using nearly any property type, including single family residential properties, multi-family residential properties, commercial properties, land, and industrial properties. Some investors request specific types of properties, while others are more flexible. Consult with potential lenders before moving forward with a hard money loan to be sure your property qualifies.
A hard money loan is usually used for purchasing land, financing construction, fast real estate purchases, home flips or remodels, and when a buyer has little or poor credit history. People who need financing fast can benefit from the quickness of a hard money loan. These loans require less time to generate and end quicker than typical loans.
A client can get private or hard equity money for:
- To pay off property taxes
- Home Improvement
- Debt Consolidation
- Pay off IRS lens
- Start a new business
- Purchase a car
- Purchase a pool
- Upgrade your Kitchen
- Take a vacation
- For Investments
- Purchase a Home
- For medical reasons
- To pay off home owner association fees
- Expanded your current business
- You need to purchase equipment for your business
- For a wedding
- Tutions for their Kids
- Stop Foreclosure
- Pay off a BK
- Pay a funeral for death of a loved one
- Finish an investment property when they run out of money
- To meet payroll at a company and have reserves
- People want to have cash on hand or put into their savings account
- To pay for new ac, and other small home repairs new appliances drive way
- Finance and new Roof
To receive a hard money loan, individuals must have a property available that qualifies for funding. Even though hard money loans are not dependent on credit scores, some lenders may request credit information before providing financing. Borrowers must additionally develop a plan to present to lenders, which contains the amount of money the individual would like and the rate that the loan will be paid off.
Considering a hard money loan? Seek our services at AHL Hard Money Network to finance your next property purchase. Text or call us at 813-368-9919 for more information today!