Hard Asset Money Loans -
What Are They?
You may be wondering...
exactly what is a
"hard asset money loan"?
What are the requirements of
obtaining one? And
what are some of the
particulars of getting one
funded?
Let us address these
questions for you here.
A hard asset money loan
borrower receives money in
exchange for giving up an
asset base loan on a
particular piece of real
estate.
Hard Asset Loans - The
Numbers
The money received usually
is short term - anywhere
between 6 months to 2 years.
Additionally, the
loan-to-value ratios usually
run anywhere from 65-70% of
the property value. The
lender fees generally run
anywhere between 4-10
points. The interest rates
on this property usually run
between 13-18%.
Your Credit Score
Your credit score is
sometimes a factor in the
decision making of the
lender, however the main
criteria is the value of the
property and its underlying
equity. The long intentions
of the borrower are examined
as a factor into the credit
score criteria.
Flipping a property vs.
refinancing the property at
some later date is important
information for the lender.
Fast Cash
Hard asset money can be done
quickly, appraisals can be
as simple as a drive by vs.
a full blown appraisal. A
Party near a foreclosure may
want to consider this as an
option before this event
occurs. (Time can be
of the essence in many
cases.)
Hard Asset Money Lenders
Each lender has his own
rules on prepayment
penalties, so the borrower
should be aware of all the
fine print. Tax liens,
judgements, etc. will be
paid off as part of the
closing of a hard asset
money loan.
There are many lenders out
there to do a hard money
loan so please check out
all the variables before
commencing this type of
asset based loan. The spread
between points and interest
rate can be substantial;
therefore, shopping for the
best deal is important.
(That's where WE come in!)
The following are some of
the eligible properties that
would qualify for a
conventional/ hard asset
money loan:
Eligible Types of Properties
for a Business Loan Include:
