Whether you’re a business owner, homeowner, an entrepreneur, or a budding commercial real estate builder, a hard money loan can be useful for you. These are short-term, safe lending tools for business and private borrowers.
A hard money loan can be obtained for various purposes such as:
- For real estate propertyprojects
- To raise quick money on investments without stringent policies and regulations
- To bridge the gap in the price and payment ability when buying a real estate property
- To buy a land for development or investment purpose, etc.
In short, a hard money loan can be helpful in making quick profits on your investments. Hard money loans are offered by commercial hard money lenders instead of traditional banks and credit unions. These loans are less stringent in nature, more flexible, and perfect for borrowers who’re worried about getting denied by a bank due to poor credit.
Let’s dig deeper and get to know more about hard money loans.
Hard Money Business Loans: Digging Deeper
Hard money loans are usually obtained against a collateral, meaning that there’s some type of security such as a real estate property with the private lender. Borrowers with required collateral can easily obtain the hard money loan without getting scanned for poor credit.
You’d be surprised to know that your private equity lender isn’t counting on you to pay back your loan, which is why the credit isn’t a big deal. Instead, the value of your loan depends on the collateral and in case of payment delay, the lender will continue with the possession of your asset.
How Hard Money Loans Work
Hard money loans are backed by high-interest and short-term qualities. Most hard money lenders in the US offer hard money loans for no longer than one year with an interest rate of no more than 21%. In addition, there’s no particular underwriting procedure for borrowers and lenders and this part varies from lender to lender.
Due to the uniqueness of hard money loans, the terms and condition depends on the policies developed by your private equity lender.
Advantages of Hard Money Loans
Most business owners and private borrowers take out hard money loans specifically when they’re dealing with a time sensitive investment. A hard money loan allows the borrower to make lucrative, attractive deals and seal the project as soon as possible. Here are some of the major pros of applying for hard money loans nationwide:
- Hard money loans save you heaps of time as they’re approved quickly
- Nationwide hard money lenders have flexible policies which otherwise will be quite a hassle if you opt to take out a tradition loan from the bank
- Hard money loans, unlike traditional financing tools, are negotiable
- You don’t have to worry about getting rejected if you don’t have a stellar credit history
At Commercial Private Equity, we offer swift and flexible hard money loans nationwide, on the best terms and conditions. Trusted for over 75 years, our firm is the top-choice of countless businesses and private borrowers.