Investors Corner: Hard Money Lenders What To Look For?

A hard money loan is a short-term, non-conforming loan for commercial or investment properties, that doesn’t come from traditional lenders, but rather people or private companies that accept property or an asset as collateral. Commercial borrowers may turn to hard money loans after having a loan or mortgage application denied, or to avoid the lengthy process of getting approved for a loan through traditional means.

Like a traditional mortgage, a hard money loan is a secured loan, guaranteed by the property it’s being used to purchase. The “hard” part of “hard money” refers to the tangible asset being used to back the value of the loan. When someone defaults on a secured loan, the lender can take ownership of the asset to recoup its losses.

Unlike traditional mortgages or other types of secured loans, hard money loans come with a fast and typically less stringent approval process, making them ideal if a purchase needs to happen fairly quickly.

With a mortgage, it often takes more than a month, from application to close, to purchase a property. With hard money loans, it’s possible to close in just a few days.

Mortgage 101, it all starts here, we do the research for you whether a VA, FHA, Conventional, or non-traditional. We can help take the challenges out of the equation. 

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