Whenever you hear the words “hard money loan” (or “private money loan”) what’s the first thing that passes through your thoughts?
Shady searching loan providers whom conduct their business in dark alleys and cost sky-high rates of interest?
Some bad apples tarnished the hard money lending industry when a few predatory lenders were attempting to “loan-to-own”, providing very risky loans to borrowers using real estate as collateral and intending to foreclose on the properties in prior years. Fortunately, these kinds of difficult cash lenders don’t exist in today’s market, however some recurring stigma stays for many property investors that haven’t recently used the solutions of a professional money lender that is hard.
In this essay, we shall look at the basic principles of difficult cash loans, including:
- Just just exactly What hard cash loans are exactly about.
- The sorts of properties and discounts money that is hard are right for.
- What sort of interest levels and loan to value ratios you may anticipate.
- Standard requirements of this debtor. Continue reading Tough Cash 101: All You Need To Find Out About Getting To Grips With Tricky Cash Loans