Wednesday 25 April 2012

Hard Money for Real Estate Investing


hard money loan lenders
Hard money funds are big source of capital for real estate investors. In order to complete financial transactions, investors require more operating capital than conventional banks are prepared to provide on short notice. So real estate investors prefer hard money lending to take advantage of ongoing projects. Hard money loan is a source of refinancing and funding business. It is special type of real estate loan which is backed by the value of property not by the financial condition of the borrower. Whether your deal is a commercial construction project, a high rise acquisition or a residential housing development, it will help you in all situations.

California Private Money Financing
In these days, real estate business is increasing day by day. Every day there sets thousands of deals on buying and selling of properties. These deals are on cash basis or on loan basis. As a buyer or investor you need a huge capital in short time to complete business deal. We know that traditional banks are not fulfilling needs of borrower in short time. As they require income verification and large paper work in order to just apply for loan. Here comes hard money lending companies to finance you and solve your problem. They typically gave loan within 72 hours of receiving the final docs from the Title Company. Hard money lending is becoming popular among investors in America. California is head quarter of this business. Different private lending companies operate in California to facilitate borrowers with capital to complete their business transactions.

Lenders can also fund projects that conventional banks cannot. If your real estate investing takes you to the realm of dry cleaners, gas stations, or even assisted living facilities (one of the hottest growing real estate markets in the US), conventional banks are not likely to be able to fund your project. Hard money loans can, once again, be a deal saver.

Hard Money real Estate Loans
Beside this, 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.

At last I would say that hard money lending is a big advantage for real estate investors. It is a best option for investors to invest in commercial projects as well as small projects. It will help a lot to fulfill business requirements and to complete dreams and goals.

2 comments:

  1. Hm, good deals on real state can be offered anytime. It’s like a tempting dessert for any investors who longs to invest in real estate property. In times like this, a hard money loan should be a last resort. It is readily available, and relatively quick to process. But although it appears to be cheap, it can also be risky. If the loan cannot be paid off quickly, investors may lose the property.

    Allan Getter

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  2. Hard money is financial backing from private investors in the form of a loan.Hard money lenders should provide hard money loans to their borrowers only based on their assets like house, car etc...But banks prefer to give based on credit scores. Also the interest rates should vary when compared to banking sector with private hard money lenders.

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