A type of loan issued by private lenders for real estate investments, secured by the property itself.
The loan amount is based on the property's value and the borrower's experience, with higher interest rates and shorter terms than traditional loans.
Networking, online directories, and referrals from other investors can lead to finding a reputable hard money lender.
Quick access to funding, flexibility, and the ability to take advantage of profitable opportunities that traditional financing may not allow.
Faster approval and funding, less stringent requirements, and no prepayment penalties.
Higher interest rates, shorter repayment terms, and the potential for predatory lending practices.
Traditional financing, seller financing, and crowdfunding platforms.
Proper due diligence is necessary when considering a hard money loan, but they can be a valuable tool for real estate investors with the right strategy and plan in place.