What Are Hard Money Loans?

Hard money loans are short-term, non-conforming secured loans for commercial or investment properties. The “hard” part of “hard money” refers to the collateral—a tangible asset—used to guarantee the hard money loan.

A commercial borrower may also seek out a hard money loan broker for timely assistance after receiving a mortgage or loan denial. These types of loans are beneficial for borrowers wanting to avoid lengthy approval processes. The typically short approval process associated with quick hard money loans is great if a borrower needs fast access to funding.

How Do Hard Money Loans Work?

Traditionally, people and companies apply for loans that involve lenders reviewing their finances. Unfortunately, some don’t have the favorable financial history lenders want to see. However, short-term hard money loans don’t come from traditional lenders.

Instead, you can obtain these loans from private companies or people accepting assets such as property or vehicles as collateral. It’s also recommended to work with a hard money loan broker who can help you find lenders. If you default on this type of loan, the lender becomes the owner of your originally offered assets.

What Are Hard Money Loans Used For?

House Flipping

Flipping homes involves buying properties at low prices, renovating them, and selling them for a profit. If you can’t qualify for traditional lending options, a hard money loan broker may help you get one step closer to your dream of house flipping.

A hard money loan can offer the fast financing that new or experienced house flippers need. A short-term hard money loan is also helpful since house flippers don’t often need long loan terms.

Investment Properties

Another great reason to consider a hard money loan is for investment property purposes. Don’t let a lack of access to traditional lenders stop you from buying investment properties. Instead, seek out a hard money loan.

Contact Lend 4 You

When you need fast funding, Lend 4 You can help. Contact our brokers and loan experts today to learn more about our wide range of hard money loans.