Do You Have an Investment Property That You Are Interested in Purchasing?

Hard money san diego

The risk paid off. After three months of hard work and scouring the showrooms for some real deals, you finally have your newest property you purchased. The fact that this renovation took six weeks longer than you planned, you are especially glad that you were able to get a hold of the hard money loan rates that were lower than those you found in the past.
Private money lenders often provide loans that serve some very specific purposes. For instance, some of the most creative hard money loan rates allow for immediate access to funds for very specific purposes like real estate remodels and resales. Although they have higher interest rates, these loans are immediately available and use the equity in the property as collateral.
Consider some of these other facts and figures about hard money lenders and the funds that they offer:

  • Questions about the terms of hard money loans include what the interest rates are and how these rates are calculated.
  • Unless you have a plan to complete the renovations quickly, hard money loans may not be the best option. The goal in all of these projects is to make the necessary changes and get the property ready for a quick resale.
  • In most hard money loans, property is secured with 30% to 50% equity, so the investor is well protected.
  • Cash can help you reach your goals. Having to wait weeks or months to go through the loan process of a typical bank, however, is not always an option.
  • Knowing a private money lender who will allow you use the equity in your property as collateral for a loan means that you can get easier and faster access to the money that you need when you need it.



  • Construction costs must be accurately predicted if a hard money loan is going to be effective.
  • A typical bank loan borrower who wants to take out a business loan has to be in business for at least two years, have at least $250,000 of annual revenue, have good personal and business credit, and be cash flow positive. Hard money loans, however, have fewer requirements because the property is considered an asset.
  • Some hard money loans offer higher interest rates and lower loan to value ratios. Hard money interest rates, for instance, can start at 15%, 18%, or even higher.
  • Home loans are available in a variety of forms. Knowing the kind of loan that you need is important to the purpose of the project. HArd money loan rates are applicable in many home renovation situations.

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