Hard Money Loan Resources Page

What is hard money?
Hard Money lending is collateral based. Collateral can include real estate, business assets, receivables, and personal assets such as cars, art, jewelry, etc. Most hard money lenders prefer real estate as collateral. Real estate holds its value well and is immovable making it much easier to collect on if the borrower stops making payments. Since collateral is the main requirement, credit, income, and other person qualifications are not as important, and often are ignored in the underwriting process. But don't be surprised if a hard money lender asks for your personal information and runs a credit check. They still want to know who they are dealing with in order to prevent fraud.

Common misconceptions about what hard money lending is include: unsecured loans, personal loans, and loans for more than what the collateral will allow a lender to recoup from the foreclosure process. These loan types are best served by banks and large institutional lenders that feel comfortable with the additional risk of losing money in the event of non-payment. Most hard money lenders will not make construction loans, no money down purchase loans, and rehab loans based on fixed up values. These are special niches that only a small percentage of lenders cover.

Hard Money lenders are often from private sources. The lending philosophy is to fill niches conventional lenders will not touch. Because of their small size and personal involvement, hard money lenders can usually close a loan much faster and with less paperwork than a conventional lender. Speed and flexibility are the hard money lender's biggest competitive advantage, allowing them to charge higher rates and fees than conventional lenders. Because hard money is expensive, it is typically viewed as a temporary solution. Loans are usually written for no more than a 5 year term.

Hard money loan guidelines and typical transactions include:
- $30,000 to $10,000,000 per transaction/same project
- Up to 70% loan-to-value improved-marketable structures
- Up to 50% on land or lots ready to build
- Residential and Commercial property acquisition, construction, and refinancing
- Debt Consolidation, bankruptcy and foreclosure bailout loans are common
- Loans on commercial buildings, vacant land, and more ...
- Cash out for paying bills, investing, buying other real estate, and more...

Got a tough multi-million dollar deal?
Consistently hearing "No" to your deal because it doesn't fit the conventional box?
Need a short term loan? Are traditional lenders taking forever to close?

With "private lenders" the hard assets are the key.
Hard money loans are property-driven and typically have a much quicker turnaround. Creative transactions such as: interest only payments, partial deed release, and participations are usually considered.

Bad-Credit-Financing.com is your best source for Hard Money Loans.