Hard Money lenders are private companies dealing in a special type of loan called hard money loans. It is a special type of loan which is backed by the value of property, not by the credit worthiness of the borrower. Hard money loans are sometimes called short term loans or bridge loan because these loans do not fulfill your long term business needs. Since these loans are given by private companies or individuals and they do not have such a huge amount so they only fulfill short term needs of borrowers.
Hard money loans are more expensive than traditional loans because they give a loan on high interest rates as compared to conventional bank loans. Some advantages of this loan includes that it does not require income verification from customers and similarly no so much documentation is required for taking this loan. What you need to apply for loan is just a brief introduction of yourself and your property. They will verify your details and give you required money. So the people who don’t want verification of their property, hard money loan are a good choice for them.
Commercial Hard money is issued to a business entity or individual signing on behalf of a business entity or individual. Commercial hard money is greater than simple hard money loan. This loan is used for commercial real estate business like selling and buying of commercial property. To qualify for commercial loan you need to verify your business by lender companies.
Hard money is given on strict rules and regulations as compared to other lending companies or banks. Generally banks impose soft terms and conditions for loans. Since money is a belonging to individual person in case of hard money lending so everyone is serious about his or her money. Now a days different hard money lending companies are working throughout the world to facilitate borrowers to take loan and complete their business needs. Within the advancement of real estate business hard money lending also increases day by day.
Equity Coalition, LLC is an example of hard money lending company. Its headquarter is in San Francisco, California, specializes in structured real estate finance providing private equity and mortgage loans to facilitate Real Estate acquisitions and investments nationwide. They control the most comprehensive private money network in the nation and have partnered with some of the most highly capitalized real estate investors remaining within the United States.
At last I would say if anyone wants a loan for his business in short time and with minimum documentation then he should apply for hard money loan. It would save his time and money and soon he will in a position to continue his business.