Hard Money Loans: A Quick Tutorial

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OK, time for a quick tutorial on one of our industry’s least-understood products: the hard money loan.

The What:

A hard money loan is simply a short-term loan, usually provided by private investors, that is asset-based and secured by real property of any kind (single- or multi-family residences, industrial or commercial properties, land, etc.). Due to the short loan term, the interest rate on a hard money loan is typically higher than that of a traditional loan.

The Why:

A common misconception is that hard money loans are solely for those with credit or income challenges, but this is not the case. If you are seeking your loan in order to buy land, purchase property at an auction, or do a fix-and-flip on an older run-down property, your project won’t qualify for a traditional loan. In cases like this, a hard money loan from Veristone is a great option — not only can your venture be funded much more quickly than a loan issued by a bank or credit union, but hard money works just like cash, giving you the power of leverage and the ability to do more with your capital than you could by going the traditional lending route.

The Who:

For many real estate investors, time is of the essence when it comes to getting the ball rolling on the projects they need funded. For those without the time (or patience) to wait the standard 30 – 45 days for a traditional bank loan, a Veristone hard money loan makes perfect sense. The application only takes a couple days to process, and a fast close will demonstrate to sellers that you mean business!

Of course, this is just a brief tutorial and much more can be said. If you are serious about real estate investment and have questions about whether a hard money loan is a good option for you, contact us today and one of our brokers will be happy to walk you through the process and answer any questions you may have.


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