Hard Money Lenders
Many of the top institutions and banks do not consider themselves hard money lenders. In-fact many of the make it HARD to get a loan and many consumers delieve they are more like HARD TO FIND money lenders.
Good news, there is a whole world of lending out there where private money, investors, syndicates and other lending business thrive helping both individuals and business a like when they don’t find in the BOX that the typical loan companies require.
Hard Money lending
There are many reasons people can’t get a traditional bank loan, like:
- Bad credit
- No Assets
- Rehab or construction loans
- No supporting documents
- New in business
- Need Loan quicker than a back can provide
- Need does not qualify and the list goes on……
That is what Hard money lenders do, they fill the gap and often times are very competitive as long as you have a reasonable package to provide.
Hard Money Lenders want to see proof or payback, and the ability to get their money back if something goes sideways.
You may be required to put up the following things to get a hard money loan like:
- Personal Funds
- Stocks and bonds
- Your home
Things that a lender knows you don’t want to lose and are willing to risk to ensure they get their money back.
They don’t want those things, they just want protection to ensure they are going to get their money back with the desired interest ate and POINTS.
Hard Money Loans and Points
Most hard money lenders are going to require cash upfront, it is their way to make sure your serious and gives them part of their overall return right up front. Typically the more points or ORIGINATION FEE that is charged the lower the interest rate. We have seen points from 1% to 15% depending on the risk -vs-reward outlines in the deal structure. Speed often drives that up too, if your in need of a hard money loan in a short amount of time that could drive up the rates all together.
Hard Money Lenders are loyal to their clients, if you do a deal and pay them back they are more likely to do other deals with you and the terms get better as they believe their risk profile decreases. Jumbo Hard Money Loans are often times easier to get through private lending, as the banks require different things that increase that protect them but often times make it nearly impossible for someone to get a traditional jumbo loan.