A hard money loan is a type of asset-based loan financing in which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing.

Many hard money mortgages are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the maximum loan to value (LTV) ratio is 65-70%. That is, if the property is worth $100,000, the lender would advance $65,000-70,000 against it. This low LTV provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.

Home Equity Loan – Equity is defined as the monetary value of a property or business beyond any amounts owed on it in mortgages, claims, liens, etc. In simpler terms, home equity is how much house you have earned.

Equity is the difference between what your house is worth and what you owe on it. For example, if your house is worth $120,000 and you owe $100,000, your equity is $20,000. You can get a home equity loan, depending on your credit rating and a number of other factors, for the $20,000 that you have built up in equity.

Construction Loan – This type of loan is temporary and used for construction of buildings and homes. A construction loan also gives the contractor small amounts of money over the construction period. It is not till the job is completely finished when a permanent loan is used to pay off the rest of the construction.

To find out if a Hard Money Loan or a Bridge Loan or other Real Estate or Commercial Loan offered by Gold Quest Group is right for you, contact us at (713) 621-6466 or online at www.GoldQuestGroup.net

Lenders disburse the money on the basis of the value of property you are buying. They are never concerned about your credit rating. Even people with CCJs, arrears, bankruptcy etc are eligible for hard money loans. So, it is better to look for a hard money loan instead of a traditional loan when you need a comprehensive amount and are in urgency.

Hard money loan is also a good option for those who need money to renovate their property before selling them. Once, your property is renovated, you can raise its market value and then you can easily repay your borrowed amount by selling the property.

Hard money loans come at little higher interest rate as they are meant for people looking to materialize some commercially viable opportunity and also for those who have poor credit ratings. Even then it is a better option to go for than to look for financial partners or to file for bankruptcy. Most of the lenders will offer you loan at a bit higher interest rate and it can be marginally higher than what you get with other traditional loans. It should not be misunderstood that hard money loans are difficult to be repaid. You can use the money to add the value of your property then repayment becomes as easy as any other loan.

Since majority of these hard money loans are disbursed by individual lenders and the approval entirely depends on their discretion .Once you get an affirmation it is a matter of 7-14 days that you can acquire the amount. There is minimal documentation involved and the process need not go through various official steps.

Hard money loans have a timed value of money as they are available when you need some for your commercial transactions. So if you find a lucrative property in offering or you simply wish to add value to your property to squeeze the maximum out of its resale value and you don’t have adequate finance you can opt for hard money loans.

The most attractive aspect of a hard money loan is the fact that it can allow a buyer to act quickly to take advantage of a particular home sale. An investor will have to plan carefully and be intelligent and educated about the terms of the loan and the value and viability of the property. An investor should be sure about the attraction of the property as with a higher interest loan the whole point is the flip the property quickly before the payments start to pile up. Additionally the loan should be designed to comprehensively cover the costs of purchase and renovation if necessary or desired. in such a situation the buyer will need to have everything organized ahead of time in terms of renovations or construction to the home and should have a definite timeline as to when things should be complete and the home can be listed. This will also take an intricate understanding of the local real estate market and the trends that dictate it. There are certain times when the market will be hot and times when it will be cooler and the sale of the home will have to be a planned event that takes advantage of the peaks of the market.

In planning a purchase with a hard money loan, be sure to sit down with your realtor and explore all the available options before taking the plunge. They are the best suited individuals to help plan the purchase and subsequent sale of the property. They will also be able to direct a investor to loan professionals that are reputable and honest. With such a wealth of dishonest mortgage companies as this country has seen in the past years, it is essential that an investor has a good amount of background on the lender that they choose to deal with. Good Luck!

The game plan of course with most business owners is to give themselves some time to restructure their books, business, improve their credit score and essentially put themselves in a stronger position to get a conventional mortgage in a year or two. However, this may not be enough time or the problems were more difficult than expected.

We see a lot of people that their primary issue is their personal credit score with the belief that they will increase it dramatically but at the end of the term there score has only moved up slightly. Regardless of the reason, the borrower may not be eligible for a typical conventional commercial mortgage.

One traditional option for business owners to get of the hard money loan is to go the SBA 7a loan route. This is because the 7a program allows credit scores as low as 520, loan to values as high as 90% on refinances and the borrower is allowed to use projections rather than just historical financials which may not show enough income to service the debt.

But this option has had several negatives that make it, almost as low of an option as the hard money loan to begin with. For example the rate normally floats over prime at around 1-2.75%, adjusting once per quarter – with no caps on the rate. In addition, the SBA normally requires a Guarantee Fee of 2.75% of 75% of the total loan amount. So in short, the benefit is that the borrower gets an option besides hard money and the rate is normally lower, depending on what Prime is than what they could get from another hard money lender.

However, not all SBA lenders are the same and it pays to be informed. For example there is a bank that offers the SBA 7a with a 5 year fixed rate at Prime + 1 and the bank absorbs the guarantee fee… As of this writing Prime is at 5.25% so most borrowers rate would be 6.25% fixed for 5 years and amortized over 25 years. This is one of the best commercial mortgages in the industry – regardless if the borrower is perfect or not.

So, if you’re facing a ballooning hard money loan and you operate your business out of a building you own you may consider going the SBA 7a route. Regardless get out there and shop because there are more options out there than your local bank is aware of.

Hard money is issued by hard money lenders to investors, wholesalers, or rehabbers. Those involved in real estate investing like to use this kind of financing as hard money lenders do not care about the borrower’s credit score. Instead, they look at the deal the borrower wants to close using the money. In short, if the deal is good, the money will come to the deal. This is because hard money is also collateral-based. If the property has a potential to return profits, then you will likely get a loan.

Borrowers prefer negotiating with hard money lenders as it is easier. Unlike in traditional lenders, those in the hard money business usually operate individually. That means you only have to convince one person to get a loan. A loan application in a traditional lender is usually is processed by a team and must pass through several steps before it is approved or rejected.

Such process is time-consuming, bringing us to another advantage of hard money loans. This kind of financing is issued fast. Within just days, you will know if your application is approved or rejected. That means you’ll be able to plan another move faster in case your request is denied.

In some sources, hard money loans can be approved in just two days after the submission of complete documents. RehabHardMoney.com uses this kind of system. Borrowers in need of fast cash can go to RehabHardMoney.com and fill out a form. This form will make “pre-qualify” you for loans and other services Rehab Hard Money offers. It will basically find you hard money lenders based on your location and specific needs. Upon signing up in the system, you will also receive FREE reports that will help you be acquainted with hard money loans. You’ll receive the “7 Secrets to using Hard Money to Your Advantage” and “5 Mistakes almost every Investor makes when Borrowing Hard Money” plus access to a video titled “How to Get & Use Hard Money Funding.”

Florida hard money comes advantageous when your credit score disqualifies you and your financial history does not allow you to go for a traditional loan. If the property that you wish to make a purchase of, fall outside the categories or beyond the guidelines that the mainstream lenders follow, you may successfully venture to approach a FHA lender. As hard loans do not entail pledging of properties as collaterals, lending these loans is risky for the providers. Owing to the risk involved, hard loans come at higher interest rates. These loans are usually short-term financing options.

Many lenders are unwilling to finance the purchase of a property in a remote location that is isolated like a lagoon. The lenders turn indifferent to the applicant, if the property is less valuable than the surrounding. In case of foreclosure, the lending company may find it difficult to sell the property to get back its finance. In such uptight cases, Florida hard money is only what that can help you out. A FHA lender may take interest in your project.

A retired person wants to purchase antique cabooses and make guesthouses of them in some tourist destination. But, owing to the unusual style and dilapidated structure of the house, the conventional lenders step back not to finance such projects. FHA hard money is the answer to how to fund such odd projects that look bright. If you have recently been bitten by the bug of bankruptcy and therefore, you need to borrow more money than what you can qualify for, it is not possible to cut an appeal with mainstream lenders. However, a FHA lender may take a look into your case if your property is valuable as collateral.

A real estate developer has bought a factory that is closed down. He plans to transform the space by building an upscale condominium there. He needs to borrow a lump sum to fund his building project. Having all his credit tapped in another project, he may not be able to persuade mainstream lenders to lend him. But a FHA lender can pay heed to financing your project. He will be required to sketch out a report focusing on the future prospects of his plan and submit it to the hard loan provider. With Florida hard money, you can easily actualize your purchasing plan or building project.

The hard money loan has really some of the stricter terms and conditions that hurdles the decision of the borrowers to avail these funds for their purpose. Even the FHA loan givers specify some of the stiff terms and clauses due to which the people hardly go for it. The eligibility criteria and the requirements for availing these facilities completely vary from one state to another. The hard monetary finances are purely asset based and the lender always try to supervise the property before approving the loans you have applied for. The common citizens, however, are benefitted in several ways by the finances offered by the FHA lender.

The hard money loans being collateral-based, the loan seekers hardly opt for these alternatives. But when it becomes extremely important to manage for some finance in certain circumstances, they are not left with any other choice. In case, if they have some time in hand to accumulate the amount, they search for other ways, but seldom prefer these loan options. Being a property-based fund, the lenders in this case do not really bother about the credit score of the loan seeker and even if he maintains a bad credit record, he can easily get it approved at the cost of his asset. In case of the FHA loans, the FHA lender provides for a fixed rate of interest that attracts more and more people towards availing these financial facilities.

Another fact about the hard money finances is that unlike traditional loans, these funds do not take too long in getting approved. The approval time that is generally taken by the traditional loans is quite long and thus, in case of immediate needs, the loan seekers knock the door of these finances other than opting for any other alternative. The main reason behind it getting less time is that there is no checking of credit scores or history that would consume the time. But in case of the FHA finance, the FHA lender sees to it that a particular borrower fulfills at least the minimum requirement in terms of the credit scores.

If you want to get your hard money fund approved easily, you must examine your property and try to keep it look good and well-maintained so that the lenders get impressed and provide you the finance for your immediate needs. Even in case of Federal Housing Administration loans, it is advised to go through the clauses and terms specified by the FHA lender thoroughly to avoid any confusion at later stages.

When considering a home purchase you will want to excercise many options other than the traditional lending facilities and these have been known for the highest interest rates. If the traditional mortgage lenders are not able to meet your financial needs, you may consider turning to hard money lenders. By going through hard money lenders, you can close a faster loan and get access to your cash sooner. If you are starting a business, buying a business or you want to upgrade your current business, getting a hard money loan might be perfect for your situation.

Many companies offer
HARD MONEY LOANS , and if they can’t finance you, you should have no problems finding hard money lenders that will back you and your business. You can finance equipment, commercial real estate, small business loans, construction loans, and more with a hard money loan.

Equity based HARD MONEY LOANS can be funded in as little as two weeks when you apply with hard money lenders. Private lenders can use your commercial property as collateral for these quick and easy loans. Most loans have up to a 75% loan-to-value ratio, and have a super fast turnaround time for funding.
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A residential HARD MONEY LOAN is a kind of loan in which a borrower gets funds based on the value of a specific commercial or residential real estate. The term hard money refers to the difficulties in acquiring a loan. HARD MONEY LOANS offer high interest rates and lower loan-to-value ratios, as there is no government institution that backs the lender. The loans are given against the value of real estate collateral.

Residential HARD MONEY LOANS are loans given by private lenders on the basis of the value of the asset or property as opposed to the traditional banking criteria of credit scores, tax returns, and income statements of the borrower. Residential HARD MONEY LOANS are temporary bridge loans that are provided for acquisitions, refinancing, foreclosures and people who file for bankruptcy. The interest rates for these loans are high, but it is cheaper than taking on a financial partner or filing for bankruptcy.

In general, HARD MONEY LOANS offer interest rates and points that are 50-100% higher than traditional bank loans. This has led to the impression that they are tough to repay. However, HARD MONEY LOANS are considered to be beneficial for people looking for sources to help them get loans, for example, to renovate residential property before selling or renting it.

The hard money lenders usually consider income-producing properties such as apartments, retail or shopping centers, industrial, office buildings, hotels, motels, medical institutions, and restaurants. They also provide loans for non-income producing activities such as land acquisition, development and construction, bank workouts, foreclosures and bankruptcies.

Most private investors look for a safe and secure investment with a return that is better than what they will receive from the bank. As residential hard money loans are secured by a property with usually 30% – 50% equity, the investor is well protected and receives the benefit of the higher interest rate return.

Difficult to come buy and carrying a high price, Hard Money Loans  are the last resort for those who can afford it.

Let’s start with a quick comparison of conventional loans to hard money loans to create a distinction up front.

Conventional loans are the tool of most home buyers. Lending institutions loan money to the buyer based on credit history and income. Hard Money Loans are less dependent on credit score and revolve around assets, instead. There should be no confusion that one is a substitute for the other. When buying a house there are many choices in loan options, but the choice between conventional or hard money is not one of them. Hard money loans are for unique, often distressed situations.

Hard money comes from private investors who can take the time to assess a borrower’s entire situation, in a way that traditional lenders cannot. The private investor understands that a few missed payments resulting from something like loss of employment, does not mean the buyer cannot repay his loan. This is a perfect scenario of when hard money works. When the homeowner has fallen so far behind on his mortgage that he cannot catch up even though he has gone back to work and resume payments, the private investor can come in, provide hard money to pay original mortgage off, offering the borrower a chance to start fresh and preserve his credit. Soon the damages of the missed house payments are repaired on his credit report and he can refinance in a traditional manner.

The reason for refinancing as quickly as possible is that hard money loans carry stiff terms. Interests rates average between 10% and 18% making it a costly option, albeit a valuable one.

Another motivation to use hard money which is relevant in markets driven by foreclosures is rehab purchases. Investors find a great property to renovate quickly for profit and they want the loan fast because there is already a buyer for the house when it’s done. The hard money loan is available much quicker and without the red tape of a traditional loan.

Don’t be confused, though, hard money loans are not a simple alternative for those with poor credit. Even private investors aren’t interested in a borrower with a history of bankruptcy or non payment. In addition, the closing costs on a hard money loan must be paid up front. These fees could be a couple hundred dollars or a couple thousand, making the hard money loan a non choice for most borrowers in distressed situations.

Hard Money Loans  are difficult to come by. The loan to value rate is a relatively low 50 to 75%. Hard money lenders like to only finance properties that are nearby them in areas they are familiar and comfortable with so they can monitor the property. Be wary of a hard money lender who makes things look too easy and shiny, as there are individuals who prey on homeowners and set up situations that guarantee failure so they can seize the house and profit from its sale.

If you fit into one of the unique scenarios that would benefit from a hard loan, do your research before signing any papers. Get recommendations on the private lender when you can. With no bank regulations on private lending the only one who can separate a legitimate lender from a loan shark is you.

The W.A.D. Group based private money lender specializing in alternative financing, announced that it has launched moneynyc.com MoneyNYC.com is a collaboration of multiple financial service providers committed to assisting individuals, business owners, and entrepreneurs with solutions to their financial needs. Lawsuit Advance, Hard Money Loans, Restaurant Finance, Real Estate Mortgage Services, Real Estate Sales, Insurance Services, Merchant Service Processing, Payroll Services, Business Start Up Services, Tax Professionals, ATM Services, and Financial Planners are who have joined the MoneyNYC.com family.

If you have been looking for a place to handle multiple financial services, moneynyc.com is worth checking out. MoneyNYC.com puts customer service first and prides themselves on their second to none service. The W.A.D. Group has built it’s solid reputation one satisfied customer at a time, and brings this same philosophy to the MoneyNYC.com family.

Robert Coppinger, Managing Member of The W.A.D. Group said “Providing a single site where clients can access top professionals in their fields easily, was a dream come true for me. I receive hundreds of calls a week from prospects, and they usually have so many questions and needs that my company as a lending institution could not answer or solve.

Over the years I have secured solid referral relationships with like minded financial service professionals, and developed a strong network to send these clients to knowing that they were going to be treated as I would treat them. MoneyNYC.com takes that process of referring clients and brings it into 2010.

I now have a dedicated platform and streamlined process for handling multiple financial service requests.” The W.A.D. Group, LLC maintains offices in Bronx New York, Hartsdale New York, and Stamford Connecticut. Please visit moneynyc.com for more information.