What Is A Hard Money Loan For Real Estate? Wise real estate investors know that hard money financing can be a very useful resource. This is primarily because Hard Money Loans are not backed solely by the credit worthiness of the borrower but rather the value of the property itself. Hard money loans also have lower loan-to-value ratios than. If $15,000 is needed for repairs to the property, then the investor will be out of pocket an additional $15,000. All in, the real estate investor will have $30,000 of his or her money in the deal when financing the property with a conforming loan. In contrast, a hard money lender will lend $82,500, which is 75% of the $110,000 ARV. A hard money loan is a collateral-oriented loan secured against real estate. Hard money lenders typically focus less on the borrower than conventional mortgage.

Hard Money Mortgage Lenders
100% Hard Money Financing

While there are several reasons why someone may invest in real estate, perhaps the biggest is for building wealth. Whether investing in real estate as a career or on the side for extra cash flow, it’s important to understand funding options before getting started.

Down payments can make investing in real estate a bit intimidating. Fortunately, paying a substantial amount of money for a down payment upfront isn’t the only way you can pursue real estate investing. A hard money loan makes the process of investing in real estate less daunting and more attainable.

To understand “what is a hard money lender,” it’s important to know what a hard money loan is: It’s simply a short-term loan secured by real estate. A hard money loan is simply a short-term loan secured by real estate. They are funded by private investors (or a fund of investors) as opposed to conventional lenders such as banks or credit unions. The terms are usually around 12 months, but the loan term can be extended to longer terms of 2-5 years. The loan requires monthly payments of only.

What is a Hard Money Loan?

As defined on our Hard Money Lending service page, Hard Money loans are intermediary loan options for individuals looking to invest in non-owner occupied (rental and investment) properties only. They’re very similar to bridge loans with a few additional benefits. Hard money loans are shorter term loans that use property value over the borrower’s credit history for approval. As a result of these specialized real estate loans, experienced, well-capitalized, private real estate lenders like Community Capital Holdings are the best places to obtain hard money loans.

Pros of Hard Money Loans for Real Estate

Just like anything else, there are pros and cons to using a hard money loan for real estate investments, but the pros far outweigh the cons. Interest rates and fees for hard money loans tend to be a bit higher than traditional loans and tend to have shorter periods for repayment, but you won’t be tied up in the “red tape” of traditional lenders that can take far too long and may have a complicated approval process.

While “cons” of hard money loans can include the higher interest rates and higher down payment, the pros far outweigh them for most serious investors, for “fix and flip” projects and even for foreign investors.

Hard money lending doesn’t require the same documentation or long process as soft money/conventional bank loans, allowing for fewer, if any, deep-dove background checks, quicker approvals and faster closings, and avoiding the red tape or requirements of conventional loans, such as credit score or personal guarantees.

But aside from that, hard money loans for serious real estate investment projects are convenient, customizable and provide alternative lending options as compared to soft money loans – traditional banks or conventional lenders – using the property as collateral over personal credit history for approval.

Real Estate Hard Money Loans in Florida

Simply put, hard money loans are a great option for investors looking to receive quick funding on real estate properties. Community Capital Holdings arranges hard money loans in Florida for the following property types:

Commercial properties
Retail properties
Single-Family and Multi-Family Homes
Townhouses and Condos
Apartment Complexes
Warehouses and Industrial Plants
Construction projects

With over 120 years of combined experience, we have helped thousands of borrowers reach their real estate investment goals and value the relationships we have built along the way.

Community Capital is nimble – using our connections and experience to get you the answers you need within 24 hours – so you always have an important edge in the investment market.

Hard Money Mortgage Lenders

For more information regarding Hard Money loans in Florida, visit our Hard Money Lending service, contact us online or at (954) 947-1232.

100% Hard Money Financing

Please note: All of the loans we fund are for non-owner occupied (rental and investment) properties. Homesteaded primary residences are not eligible.

What Is A Hard Money Loan In Real Esate