Posted by Shawn Knowles on July 14, 2002 at 03:40:17:
A hardmoney lender is usually a private lending source which will loan you money where credit isn’t a factor
but what is:
generally the like a 60%-80% L.T.V.
the interest is generally 12-16%
and they are generally short term like a year
What is a hard money lender? - Posted by Becky
Posted by Becky on July 13, 2002 at 23:58:21:
Hi,
Can someone tell me what a hard money
lender is?
thanks a lot,
Becky
Re: What is a hard money lender? - Posted by Ed Garcia
Posted by Ed Garcia on July 14, 2002 at 14:21:14:
Hard Money Loan.
A loan that is underwritten with the condition and value of the property as the
primary criteria for approval. Secondary issues may include the credit of the borrower, the ability of the borrower to repay the loan and/or the ability of the borrower to manage the property or successfully complete a rehab and sell the property. Owner occupancy, debt ratios and other issues are seldom a factor. Appraisals rather than purchase prices are used to determine value. Cash out purchases are often allowed and are another key benefit. These loans are usually approved within days and are often funded in two weeks or under with times as short as two or three days not uncommon. The cost for the benefits
of speed of funding, lax underwriting and other advantages is typically a moderately high interest rate (usually low to mid teens) and high points (usually 5 to 10).
This is the definition given in Glossary Of Common Terms Used In Loan And Lending By Ed Wachsman.
You’ll find this in the How- to- Articles of this site. I would like to recommend you visit this area of The site because it is very informative.
The bottom line on Hard Money Loans, is that they are loans made, based on the equity of property. Your income, credit, or any other criteria is not the major consideration.
Ed Garcia
Re: What is a hard money lender? - Posted by Eva
Posted by Eva on July 14, 2002 at 12:08:25:
Hello,
I got a real estate loan from a hard money lender primarily because I didn’t put ANY money down. The interest rate was high-14% but I can re-fi within 6 months and the requirement was that I live in the house at least 1 year. I wanted escrow to close wihtin 30 days and it did. My credit rating is 660-680 depending on which month you check. So bad credit isn’t necessarily a factor. At least for me it wasn’t
Re: What is a hard money lender? - Posted by Eva
Posted by Eva on July 14, 2002 at 12:07:24:
I should mention the 14% was on a 2nd trust deed. The 1st was 8 3/4%.