Various Things you should know about Hard Money Lending as an investor

Contents Introduction Requirements of Hard Money Loan Types of lenders in the market Security How to choose lenders

Introduction Hard money is the money that is offered by private investor depending upon the value of the property and not the borrower. It is very easy to get hard money loan and the reason why it is called hard because you need to submit hard assets like property or land.

Requirements of Hard Money Loan The typical requirement to obtain hard money loan is very simple and it is not hard like other traditional lenders requirement. Hard money lender will not ask your job status or credit history to offer you loan. They check whether your property is good enough or not and check whether they can obtain more profit on your property.

Types of lenders in the market Business Lender - Offer loan based on your business. They will look for the income or cash flow you obtain from the business. Commercial Lender - Offer loan based on the assets, in particular commercial property. Residential Lender - Offer loan based on your house such as single family houses, duplexes and triplexes.

Security The security in offering hard money loan depends up on the property and not particularly based upon the borrower. There are some hard money lenders who ask for the background details of the borrower and also ask for the credit report and income, but they are not termed as true hard money lender.hard money

How to choose lenders The lender can be divided into two, i.e. one who offer loan based on the real estate and other one offer loan based on other things except real estate. You can choose the lender who suits your needs best. If you want hard money loan for your business and you want your business to be secured against real estate then you need to choose the lender who offer loan on property and not in business.