Hard Money

January 31, 2023
interest rates on a loan

How Does Interest Rate Work On A Loan?

There would be no lending or borrowing economy without interest rates. The interest rate you pay can significantly impact the overall cost of any loan, whether you’re getting a mortgage for a home, a personal loan for a significant purchase, or a car loan. It is crucial to comprehend the inner workings of interest rates if you want to make intelligent financial decisions and avoid paying more than necessary for your loan. This article will discuss how interest rates are determined, their effect on your loan’s total cost, what increases your total loan balance, and more.  Real estate loans market overview Investors and businesses rely heavily on the real estate loan market when financing the purchase, development, or improvement of real estate properties. There is a vast variety of loans available in this market, from home equity lines of credit to bridge loans to refinancing options. Commercial real estate loans […]
December 15, 2022

Bridge Loans For Business: Everything You Need to Know

Are you making a sudden transition, like a work-related relocation? You may want to quickly sell your current home and use that money to purchase a new one at the new location. But closing a deal for a home isn’t easy and may not be as fast as you want. Plus, rarely will you get the closing dates to align to complete both transactions on the same day. That’s where a bridge loan can help. It provides you with temporary funding to buy the new home. However, like other loans, this type of short-term funding comes with risks. Here’s everything you need to know about a bridge loan. What Is a Bridge Loan? A bridge loan, also known as a swing loan, is a short-term loan used to purchase a new property before selling your current home. With this loan, you can move into your new home and then focus […]
November 18, 2022
insurance for property investors

Best types of insurance for property investors

Many things can go wrong for real estate investors, from unexpected natural calamities to careless tenants. Expenses incurred to restore a home to its pre-damage condition can quickly diminish a business’s revenues. However, with the proper insurance, you can be assured that your investments (and your bank account) will be safe. Remember that not all real estate investments are created equal, and your investment objectives will play a part in determining the kind of protection you require. An investor who intends to rent out a property, for instance, might require insurance to protect against nonpayment by tenants or a policy to replace lost rental income in the event of property damage. If you aim to flip the property, you don’t need to worry about this, but if you have people working on the renovations, you should consider getting workers’ compensation insurance. Your insurance should also consider the type of investment […]
August 17, 2022
hard money loans vs soft money

Hard Money Loans vs. Soft Money Loans Overview

There is a common misconception that hard money and soft money are defined by their liquidity, with hard money being cash on hand and soft money being paper assets. In reality, these terms refer to the purpose of the loan. Hard money loans are typically used for short-term financings, such as Bridge financing, which is used to fill the gap between the purchase of a new property and the sale of an existing one. Soft money loans, on the other hand, are usually used for long-term investment purposes, such as funding a real estate development project. While hard money loans tend to have higher interest rates, they can be easier to obtain than soft money loans. As a result, it is important to choose the right type of loan for your specific needs. Hard Money loans overview Some time ago hard money meant borrowing cash from a guy with a […]
June 15, 2022
hard money

5 Hard Money Loan Facts Every Borrower Needs To Know

If you are a real estate investor seeking a quick financial solution, here is a hard money loan.  However, there are things you need to know before getting it.  1. It’s a short-term loan A hard money loan may sound scary, but it’s not. It’s just a short-term loan that’s secured by real estate. Similarly, a hard money lender isn’t some scary guy you can only meet in the shadows. Not at all. A hard money lender is essentially just a private investor. A hard money lender could be an individual, a group of investors, or even a mortgage broker who uses his funds. What it isn’t is a bank using money from its depositors. Before going forward on a money loan like this, be aware that it’s a loan only meant for a short period. 2. It’s less hassle This is one of the main reasons borrowers opt for […]
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