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Hard Money Grows Real Estate Portfolios

Hard money is defined as non-traditional lenders that use properties to secure loans. Not backed by government programs, hard money loan rates range from 12- to 20-percent, with an average of one to five points being charged for loan financing fees. With one-percent per point, these fees are often wrapped into the total cost of the loan.

More real estate investors are using hard money lenders over traditional banks. With banks focusing on financing the person or company, they typically loan less money on investment loans. On average, hard money lenders loan nearly 65-percent of after-repair values (ARV).

A substantial benefit of using hard money lenders is that investors are able to focus on purchasing properties that are 65-percent or less ARV, buying properties for no down payments. Since direct lenders focus on the specific investment property instead of the person obtaining the loan, they are often easier to work with, subject to less government restrictions and are not overly concerned with personal credit ratings.

Hard money lenders offer a viable alternative to traditional bank financing. Helping investors with initial investments, once they begin turning profits, investors can easily qualify for traditional, low-interest bank loans.

There are several key benefits to working with hard money lenders, including:

  • Speed – Serious investors know they need to react quickly or a good deal will be off the market. Hard money lenders respond to investors within a day, providing fast loan funding when necessary. Allowing for quick closings, more sellers are willing to accept lower price offers in exchange for fast cash.
  • Flexibility – Without strict loan requirements, hard money lenders have greater flexibility when funding property loans. Banks analyze the person, while hard money lenders focus on the property’s potential.
  • Pricing – With competitive rates, most hard money loans are due within months, but some can be pushed out several years.
  • Red Tape – Without government red tape, hard money lenders can focus on efficient business practices, which offers greater flexibility for real estate investors.


My Hard Money Lenders is a comprehensive website that highlights hard money lenders across the nation. These direct lenders focus on offering the following types of property loans: apartment complexes, multi-family, self-storage facilities, office buildings, land development, warehouses, equipment and machinery, retail centers, mobile home parks, raw land, resorts, restaurants, mixed use, convenience stores, gas stations, car washes, hospitality hotels and motels, taverns, new residential developments, pawn shops, golf courses, marinas, auto body repair shops, industrial properties, owner occupied businesses, special purpose properties, conversions, medical buildings and even gold mines. With expertise in commercial building loans and apartment building loans, real estate investors can rest assured knowing they’re in good hands.

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