Hard Money Loans - What, Who and Why
Every broker should know where to go for hard money. When clients need hard money, it is generally because they are in a situation where they need the funds quickly. This may be in order to seize an investment opportunity, to avoid foreclosure or for many other reasons. Regardless of the motivating factors, time is of the essence with hard money deals. Doing some research ahead of time will allow you to help your borrowers get the financing they are seeking as quickly as possible.
Remington Financial Group is a broker-friendly correspondent that can open the doors to sources for hard money - as well as conventional - loans. We have the processes in place to handle the quick turnaround hard money loans require.
What sets hard money apart?
Hard money is a higher risk than conventional financing. Many times hard money loans are issued on properties which are distressed or have a greater risk for investors for other reasons. Due to the high risk, hard money loans generally carry lower LTVs and higher interest rates. However, when handled correctly, it can provide a win-win solution. A hard money deal often moves from start to close within a thirty-day period. Borrowers get the financing they need when they need it, and you get compensated for helping them find a solution to their financing challenges.
What should you look for in a Hard Money loan source?
As with other types of loans, an experienced investment bank can provide financing that makes the deal possible. Remington Financial Group has been providing hard money capital for the past 16 years. We have built relationships, which we can leverage to provide the best terms to brokers and borrowers. If hard money is not what you're looking for, we have sources for conventional financing as well.
RFG is set up for the expedited closings that hard money deals require. We prepare appraisers, attorneys and everyone who is part of the underwriting process to review loans and move them through the review and approval process quickly.
You should look for an investment bank that knows when hard money is worth the risk. RFG provides hard money financing when there is a certain amount of collateral, along with a financial or business plan with potential.
So what do we look for in a Hard Money deal?
Remington Financial Group knows what to look for when it comes to hard money. RFG considers hard money scenarios for construction, business investment and real estate. We have an appetite for securing financing in industries that are experiencing growth, for example, service, manufacturing, energy resource development. Property types that RFG will consider for hard money include hospitality (i.e. resorts, hotels), multifamily, mixed use, assisted living facilities, automotive, (i.e. gas stations, car washes), developed or raw land, retail, office buildings, industrial and special-purpose properties, (i.e. banquet halls, conference centers).
On deals that include real estate, the property must have an ironclad appraisal. There also must be a viable exit strategy showing a reasonable plan for repaying the loan. We can work with brokers and borrowers to find an acceptable course of action.
In the right situation, a hard money deal allows the borrower to close quickly on property, construction or business loans. Working with an experienced investment bank is crucial to success with a hard money loan. Remington Financial Group, is set up for expedited deals, such as hard money.
Sean Allard, 480.659.5742, sallard@remingtonfg.com
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