Hard Money Real Estate Loans from Coastal La Jolla Funding
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Hard Money Real Estate Loan Definition:
A hard money real estate loan is a short-term bridge loan that is used for
acquisitions, turnaround situations, foreclosures and bankruptcies. Interest
rates, although high on business hard money real estate loans, are less
costly than taking on a financial partners or losing the real estate opportunity
altogether.
Who are Hard Money Real Estate Loans Ideal for?
Hard money real estate loans are ideal for borrowers who are unable to obtain
funding through a conventional source. The properties or the borrowers are
often clouded by legal or operational problems. Hard money real estate loan
lenders can often help solve the problems and get the property repositioned
for a conventional refinance.
Hard Money Real Estate Loan Lenders
All Hard Money Real Estate Loan lenders are different. The Hard Money Real
Estate Loan lenders we refer clients to will usually consider income producing
properties such as apartments, condo/co-op conversions, retail/shopping/strip
centers, mixed use properties, industrial, office buildings, hotels/motels,
medical, mobile home parks and restaurants, as well as non-income producing
properties such as land acquisition, development and construction, bank
workouts, foreclosures and bankruptcies.
How long do Hard Money Real Estate Loans typically last?
Hard money real estate loan terms are typically no longer than two to three
years. The reason is simply that a longer term becomes too expensive for
the borrower. With hard money real estate loan lending, the goal is to have
the borrower in and out of the hard money real estate loan as quickly as
possible. The hard money real estate loan lender will analyze each transaction
during the due diligence process for "good risk" -- to be sure that a property
can be repositioned for conventional refinancing or sale within one or two
years.
Business Hard Money Real Estate Loan Equity
The amount of equity needed for a hard money real estate loan depends
on the quality of the real estate and the hard money real estate loan
lenders themselves. The Hard Money Real Estate Loan lenders of Coastal
La Jolla Funding prefer 20% to 25% equity.
If you would like to apply for a hard money real estate loan through the
Coastal La Jolla Funding, click on our hard money
real estate loan application.
For information on hard money personal loans, click on our hard
money personal loans.
For a print version of this page, click on hard
money real estate loans print