What is Hard Money?

By
Mortgage and Lending with Webster Bank 49493
https://activerain.com/droplet/4L9T

Hard Money Rhode Island

What is Hard Money?

A hard money mortgage is an alternative to borrowing money from a bank or credit union.

The hard money mortgage is typically based on the subject properties equity with only a small amount of attention paid to the borrowers credit.

Loan amounts vary greatly from lender to lender based on what their comfort level is. Some private money lenders will not lend more than 50% of the properties value, while some will consider going as high as 75-80%.

Understandably, with the greater risk that these loans come with to the investor, rates and fees tend to be a bit more than what a traditional bank loan may come with.

The majority of hard money loan requests are for cash to rehab a property to either fix and flip it or to fix it and refinance the finished product with a bank.

Another feature of hard money loans that is very attractive with property developers is speed. A hard money loan request can close in as little as 5-10 days after the initial request. This can come in handy for a client or borrower who needs to move quickly on a good real estate opportunity.

You can read more about what goes into the decision making and approval process when looking at a hard money loan here... The Five "E"'s of Private Money.

If you are looking at a real estate opportunity in either Massachusetts or Rhode Island and have questions about hard money and if it would work for you, please call me with your scenario.

 

Jason

401-580-7612

 

 

 

 

Posted by

 

Jason E Potrzeba

Loan Advisor

Acadia Advisory Group

Riverside RI 02915

(401) 580-7612 Cell

(401) 223-4975 Fax

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Lending / Financial
Location:
Massachusetts Bristol County Fall River
Groups:
Mortgages
The Art Of Marketing You
MAKIN IT RAIN
Tags:
fix and flip
hard money
construction loan
rehab loan
hard money broker
private money broker

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
3,983,375
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Interesting...I have a client that may need just this type of a loan.

Jan 31, 2015 02:30 AM #1
Rainmaker
677,109
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Thanks for sharing, always a need in certain situations when a conventional loan will not work.

Jan 31, 2015 02:58 AM #2
Rainmaker
2,808,059
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Jason - Thanks for the detailed information about hard many.

Jan 31, 2015 09:46 AM #3
Rainer
137,684
Dan Spencer
Aspen Lane Real Estate - Aurora, CO
Your Colorado Home Source

Jason thanks for the information. I need to look up more information on the subject.

Jan 31, 2015 10:17 AM #4
Rainmaker
1,675,919
Winston Heverly
Winston Realty, Inc. - Atlantis, FL
GRI, ABR, SFR, CDPE, CIAS, PA

Super post, I'm glad I came across it from the archives. Thanks for sharing.

Feb 27, 2016 09:56 PM #5
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
239,567

Jason Potrzeba

Mortgage Banking Officer
I can help! What do you need a commercial mortgage for?
*
*
*
*
Spam prevention

Additional Information