No business wants to experience a funding gap. That is where sufficient funds are not available to pay for current operations or to finance future development efforts. Also, without adequate funding, a business won’t be attractive to investors. A good solution can be to secure a hard money loan.
What Is a Hard Money Loan?
A hard money loan is a loan that is secured by using the asset being purchased as collateral. These loans are used in real estate transactions. They are typically offered by individual investors or financial companies rather than banks. They usually come with higher interest rates compared to traditional types of loans.
Hard money loans, in particular, can be closed quicker than traditional loans because of the loan collateral. These types of loans are flexible and don’t require an underwriting process. Construction loans, land loans, wholesale property funding, property flippers, and property renovation projects can use these loans.
Frequently, hard money loans are approved and then funded in a few days.
How to Get a Hard Money Loan
There are three general hard money loan requirements:
First, having the required collateral for the specific loan in the form of a down payment or property equity.
Second, the borrower will have the necessary cash to pay monthly loan payments and any holding costs. Examples of holding costs include HOA fees, taxes, and insurance.
Third, the general requirement for the borrower is to have experience in the real estate industry. In many cases, a lender will ask for details of the planned project, and an exit strategy at the project’s completion, specifically regarding how the loan will be paid off.
To secure a hard money loan, a borrower will need to contact institutions that specialize in this type of loan.
Seek Expert Funding Assistance
Contact Triport Lending, based in Gulf Breeze, Florida, to get the funding you need from a trusted commercial finance company. We offer a wide range of financial solutions.