Real Estate

 

A Look At The Hard Money Loan For Real Estate Investors

When a homebuyer, property owner or investor cannot obtain funding through the normal channels, (i.e., banks, sub prime lenders or mortgage brokers, they have another little known option called, “Hard money” lenders.

These are usually private individuals, investor groups or companies that specialize in funding deals traditional bankers may not or wouldn’t touch.

The caveat, hard moneylenders don’t come cheap and they are not easy to find. But, they can assist distressed borrowers and hard-pressed investors to make seemingly impossible deals happen. Truthfully speaking, sometimes, hard money lenders are the only choice a borrower has.

Says Pam Strickland, owner of Mortgage Consulting Services in Santa Barbara, California, "There are private investors who, if the interest rate is high enough and the perceived risk is low enough, they will put the money up."

Brokers and other intermediaries who arrange hard money -- or private money -- loans "go to people who have money to lend and they match them up with people who can't get money any other way," Strickland says.

Says Michael Brackett of TLC Money Brokers in Los Angles, California, “For hard money lenders, funding undoable deals is all in a day's work. These private investors and companies make loans where even subprime lenders fear to tread.”

Hard Money Lenders

 

 

 


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