When you are looking to borrow money, especially for a real estate purchase, you are confronted by many choices. You know that real estate is a great way to build wealth. But, you are perplexed about how to finance the purchases you want to make. A hard money loan may be a good form of financing to look into.
Consider a Hard Money Loan
A hard money loan is a form of asset-based lending that is often used to finance commercial real estate transactions. They are offered through private lenders or finance agents, not by banks.
Hard money loans are generally short-term in duration, usually with terms of three years or less. The lender uses the value of the property being financed as security against the loan.
These loans are considered riskier than many other types of financing. Therefore, they can carry relatively high-interest rates.
Types of Hard Money Loans
Hard money loans can be used for a variety of real estate properties or projects. Here are a few:
Investment Property. Buying investment real estate is the classic use for hard money loans.
Flipping Properties. Private lenders often provide hard money solutions to those involved in fix-and-flip businesses.
Residential Rehab. Hard money loans can be ideal for those wishing to buy properties that need renovations before becoming attractive rental components of their portfolio.
Foreign Real Estate Investors. It may be difficult for foreign nationals to secure funding for real estate purchases. A hard loan from a private lender may be helpful.
Connect with Private Client Capital Partners
Private Client Capital Partners knows about hard money loans. They are happy to answer any questions that you have and assist you through the process of obtaining the right loan for your needs. They welcome your call today or whenever it is convenient for you.