subject: How Hard Money Works [print this page] Author: Carrie Dawson Author: Carrie Dawson
Real estate investors turn to hard money loans when they need fast and easy cash. Got bad credit history? No problem, get a http://www.rehabhardmoney.com" target="_blank" title="http://www.rehabhardmoney.com">hard money loan. Need cash to finance repairs and rehabs on your property? Your local hard money lender can give you what you need. Its as easy as that.
Usually, investors turn to hard money loans when traditional lenders turn their backs on them. An investors project may not be one that traditional lenders approve of, so they go for hard money loans. All you need is a good deal and you will get the money.
How much is the loan?
Since hard money loan is based on the value of a property as collateral, a borrowers income or credit history will not affect the loan. In addition, the amount of the loan is at 60%-70% of the After-Repair Value (ARV) of the property. The ARV is the value once necessary repairs have been made on the property.
Why fast cash?
Hard money loan is considered to be fast cash because transaction takes only a short period of time. Usually, borrowers go through a lot of processes to get their loan approved. Banks require longer paperwork and evaluation before they reach a final decision. Since had money lenders are mostly real estate investors themselves, they easily make decisions once the value of the property is determined. Borrowers will not have much problem on negotiating with lenders since they are more lenient and flexible.
Where to find hard money lenders?
Today, finding hard money lenders werent as hard as it was before. Thank god for internet, you can easily search for the right hard money lender that will provide your needs.http://www.rehabhardmoney.com" target="_blank" title="http://www.rehabhardmoney.com">RehabHardMoney.comprovides a meeting point for hard money lenders and borrowers. Lenders can get steady stream of loans by joining the site. Borrowers who will visit the site will get more information about hard money loans and may actually get one.About the Author:
