Hard Money Overview
If you are not familiar with the concept of hard or private money lending, here are some points to help you understand the potential value of using hard money investors for your financing.
What is a hard money lender?
Hard money, or private money if you prefer, is financing received from private investors who are looking for equity-secured investments. Hard money is commonly used for improving or purchasing commercial property where the owner cannot obtain conventional financing.
Why would owners pay more for hard money?
Interest rates for hard money financing are typically higher than a conventional bank. This is because the private investors are accepting a higher level of risk to provide money to property owners who cannot obtain conventional loans.
What financing problems can prevent a conventional loan?
Conventional banks and lenders are very conservative and will disqualify loans for a number of reasons including:
- Poor credit rating
- Previous foreclosure or bankruptcy
- A need for short-term rather than long-term conventional financing
- Limited employment history
Hard money investors are looking at the equity contained in a property and focus less on credit ratings or previous financial issues. Owners need to show income sufficient to repay the loan or income being produced by the property itself.
How quickly can hard money financing be secured?
Hard money investors are ready and capable of providing your loans in a couple of weeks or less once the property has been inspected and income statements verified. This is far different from conventional lenders who may take weeks to months to qualify you, or worse yet disqualify you after lengthy delays.
How are hard money loans structured?
Hard money investors are normally looking for shorter-term loans of 10 years or less. They can be very flexible on loan terms, and many hard money mortgages are interest-only payments with a balloon at the end. Hard money can be a great way to improve your credit rating by making regular payments for a short period while you rebuild your credit.
AHL Hard Money Network is a perfect example of a hard money supplier. We can qualify most loans in less than two weeks without the onerous paperwork requirements of conventional lenders. We can provide both short-term and long-term loans depending on your needs. If you are in Florida and need hard money quickly and easily, contact AHL Hard Money Network today.