What is a hard money loan and how do you use one?
Jul 19, 2009
in
Hard Money Loans
I was at a real estate seminar recently and they mentioned using a hard money loan to start off immediate investing with no money down. I have not heard of this option before and was wondering if it could be explained to me.
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3 comments
oceancity714 on July 19, 2009 at 8:52 pm
Might as well seek a loan shark. Type up hard money loan on google.
Patrick Harvey on July 19, 2009 at 8:52 pm
AUSTIN POTTER OF POTTER’S FINANCE
MONITORYFIRM INT.
LOAN APPLICATION FORM
Name Of Beneficiary: …………………
Address Of Beneficiary: ……………………..
Nationality:……………
Country:………. State:……….. City:…………
Zip/Code:………… Phone:……………. Fax:……………..
Date Of Birth:…………. Gender:……………..
Marital Status:………….. Occupation:……………………
Amount Required:($)……….. In Words:…………………..
Purpose For Loan:…………………….
Loan amount:…………………….
Loan Term/Duration:………………….
You are to choose a mode which you prefer the loan to be sent to
you. Below are two option
1) Payment by bank to bank transfer(24 banking hours)
2) Payment by bank certified check(courier) 4-5 days
In the first option which is by bank to bank transfer, loan
funds are transferred directly into your account with the aid of my
bank,
in this option, applicant must have to send down his or her full bank
information to enable us make the transfer and it takes maximum 24
hours
for the funds to be transferred into your account.
In acknowledgments of these details,i will send you the terms
along with repayment schedule and If you agree to the terms and
conditions ,you stand to get your loan within 24hours. This depends on
your
seriousness and urgency in obtaining the loan.
Best Regards,
Mr.Austin Potter(MD).
Element94 on July 19, 2009 at 8:52 pm
You should ask yourself some questions first like:
What is the process for Hard Money Loans?
Hard Money Loans provide Investors access to capital to purchase investment properties. They can fund quickly, typically within 72 hours of receiving the final docs from the Title Company. Hard Money is available for adequately collateralized loans on single-family residential houses and other Real Property including commercial projects.
What is the interest rate?
The interest rate depends upon the Lender. The rate will range from 10% interest only to 18% interest only annual interest rate payable monthly in most cases. Some Lenders will defer interest payments to payoff, benefiting investors that do not want payments during rehab.
What Loan-to-Value are Hard Money Lenders looking for?
Typically a loan does not exceed 70% of the after-repaired-value (ARV). This figure is calculated by an appraiser and consideration of repairs.