Loan Funding Source - Groundfloor

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3 A D V A N T A G E S O F B O R R O W I N G H A
R D M O N E Y L O A N S F R O M M I N N E A P O
L I S H A R D M O N E Y L E N D E R S
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A hard money loan is an asset-based loan. In
exchange for funds, a borrower deposits tangible
property as collateral. These deals, which are
similar to short-term bridge loans, usually
include real estate investments. The loans are
also short- term or immediate-term financings
that normally last up to three years and are
primarily utilized for quick access to cash.
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Property must be distressed and in some state of
decay in order to qualify for a hard loan.
Because commercial banks do not lend on
distressed properties, hard loan lenders are
mostly private organizations or individuals.
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What's The Distinction Between Cash And Hard
Money? While hard money loans are not cash, they
are frequently regarded as cash equivalents due
to their differences from standard loans. A bank
will grant you a mortgage depending on the
market value of the property you have purchased
(i.e., the purchase price).
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A hard money loan, on the other hand, is based on
the property's estimated future value following
renovation, rather than its existing market
value. Your goal as an investor is to buy a
property with a high potential for profit. The
monetary difference between your hard money loan
(the post-repair property value) and the current
market value represents your expected profit.
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This is why a hard money loan is sometimes
equated with cash in real estate
investments. There are, however, distinctions
between cash and hard money loans. The three
advantages are as follows
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Pros Of Hard Money Quick Closing Hard money
loans can be closed faster than standard loans.
The private lender is primarily concerned with
your posted collateral. Your financial state and
employment situation are secondary concerns.
There are no in-depth examinations of bank
statements, tax filings, or credit reports.
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Adaptable Terms Hard money lenders do not use a
typical underwriting process. Deals are instead
examined on an individual basis. You are talking
with an individual or a private company, not a
commercial bank with rigid policies, and it may
be possible to change repayment schedules and
loan terms.
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Loan amount If you are acquiring an investment
property, the M inneapolis hard money lenders
will lend you the whole amount of the property's
value. If you borrow against another property,
the loan amount is determined by the value of
that property. You do not need to pre-qualify for
a certain loan amount and then look for
properties based on the pre-approval, as you
would with a traditional loan.
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Contact Phone no. 404-850-9225 Email
support_at_groundfloor.us Address 600 Peachtree St
NE, Ste. 810 Atlanta, GA 30308
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