What is the right loan for you?
Private money loans, or hard money,
ypically higher rates
not credit based
higher down payments
can have a prepayment penalty
condition of the house is not always an issue.
The future value can be used.
Exit strategy is needed (how are you getting out of the loan)
are you selling or refinancing?
A private money lender is a non-institutional (non-bank) individual or company that loans money, generally secured by a note and deed of trust, for the purpose of funding a real estate transaction.
There can be many uses for a Private Money Loan (PM). The basics behind the loan make it versatile.
No matter why you use a PM loan, you must have an exit strategy, otherwise, you could lose your property. An exit strategy can be selling or refinancing. If your plans are to refinance out of the PM loan, make sure to get pre-approved in advance. Otherwise, the last option will be to sell.
Let us know if you have any questions about Private Money Loans.
What is a Private Money loan?
Pardon the work in progress. More to come.
Contact us if you are interested in more information about private loans.