Hard money is a simple term used to describe a way of borrowing money without using the services of traditional mortgage lenders. The money comes from people or organizations that lend it out against the property itself. If you are looking for hard money loans to use in purchasing property, then there are some basics that you will want to know to help make the process easier to navigate.
Loans can take a lot of time to acquire. But hard money loans are quick to get and easy to use.
- Hard money loans are based on the collateral of the targeted property. The lenders are not usually concerned about your ability to repay because they can take the property and sell it to get their money back.
- The approval process is easy as they look for collateral. Most of the time your credit score is never checked.
- They are seen as a short-term investment option. People that renovate property use these loans to buy the property and resell them in a short amount of time.
If you are looking for a hard money loan, then you will want to find investors that are looking for a person like you to invest with. They want a quick return and are willing to lend money to get it.