get it from a private investor or company. These loans are usually for short periods and have higher interest rates. Imagine you find an old house you want to buy, fix up, and sell for a profit. You need $100,000 to buy it, but the bank can’t give you a loan quickly enough. You go to a hard money lender who agrees to lend you the money based on the value of the house, not your credit score. You
get the money fast, buy the house, fix it up, and then sell it. You pay back the loan with interest from the sale profits. WHY REAL ESTATE INVESTORS USE HARD MONEY LOANS
else does. Hard money lenders can provide funds more quickly than traditional banks, allowing investors to seize opportunities. FLEXIBILITY. Traditional banks often have strict rules about who they lend to and what properties they’ll finance. Hard money lenders are more flexible and may be willing to lend to investors with less-than-perfect credit or for properties that banks won’t touch.
Real estate investors use hard money loans for a few reasons:
QUICK FUNDING. Sometimes, investors need money fast to buy a property before someone
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