The truth about hard money lenders?
It used to be that hard money lenders would lend solely based upon the deal or property at hand. Hard money lenders are lending companies offering a specialized type of real-estate backed loan. Hard money lenders provide short-term loans (also called a bridge loan) that provide funding based on the value of real estate that has been collateralized for the loan.
Now, you will find that many hard money lenders, if they want to stay in business, require more than just equity to qualify. Consumer protection laws, time consuming and expensive court procedures, and so on have forced some hard money lenders to become even harsher when applying for a loan. Typically hard money lenders will charge anywhere from 2-10 points just to use their money. Many hard money lenders today will also require you to fill out a credit application that may ask you for w-2’s and or tax returns, your most recent pay stubs, and bank statements. There are hundreds of hard money lenders waiting to lend you money. The best way to find hard money lenders is to talk to a mortgage company and ask for referrals. Another way is search online for hard money lenders. You can get a list of hard money lenders when you join our newsletter. You’ll also receive a list of hard money lenders and investment groups in your area. Most real estate investors are looking for a private hard money lender and fast hard money lending, at rehabhardmoney fast hard money loans from private hard money lenders can be obtained in a matter of days.
Industry professionals who want to earn significant income in the hard money industry, are introduced to hard money lenders from all areas of the country. Several states’ usury laws, including tennessee and new jersey, prevent hard money lenders from operating with their usual practices.