What Is A Hard Money Loan?

A hard money loan is a form of asset-based lending used to finance real estate. Hard money loans are secured by the borrower's property and therefore help provide an alternative to traditional bank loans. This article provides an overview of what a hard money loan is, how it works, and the different types of firms that provide these services. You can pop over here to know more about hard money loan.

When you first take on a client, it can be hard to know what type of loan would make sense for them. A bank might offer a variety of loans that are based on their risk level, but even still, there can be some uncertainty about what you should do. In this article, we'll break down the difference between a hard money loan and other types of loans.

On average, hard money loans are between 5% and 15% of the purchase price of real estate. This percentage depends on the amount of cash that is to be borrowed, which is related to the type of property purchased.

Hard money loans are often the best option for business owners who need to finance a construction project or purchase of real estate against equity, but don't want to rely on banks or venture capital firms. Hard money loans are typically more difficult to qualify for, and the interest rates are typically higher than traditional loans.