Loans can be sought for a number of reasons. Different types of loans include business loans, student loans, construction loans, and mortgage loans, just to name a few examples. One type of loan that many like to acquire is a hard money loan. The typical hard money loan lasts for six months to a year, but can be secured for a longer period of time depending on who is lending the money. If you’re looking to secure a hard money loan, this article will provide a brief overview on what these loans are and what they’re used for.
- Hard Money Loans are Tied to Real Estate: One of the first things you need to know about hard money loans is that they are tied to real estate. This is why they’re known as “hard” money loans, because they’re secured with hard assets, in this case real estate. Basically, this means you are putting up real estate as collateral in order to receive the money for the loan. As long as the loan is paid back on time, nothing happens to the real estate. However, if the loan is not paid back on time, there’s a chance the real estate could be seized as payment instead.
- They Come From a Range of People: Another thing to know about hard money loans is that you don’t need to go to a bank to secure one. Unlike other loans that come from a bank or other financial institutions, hard money loans are what are known as private loans; they come from individuals. For example, hard money loans can come from friends and family, professional acquaintances, or, professional hard money lenders, individuals who specialize in issuing this type of loan.
- Hard Money Loans Can Be Secured Quickly: A third thing to know about hard money loans is that they’re associated with quick approvals. Unlike some loans, which can take months to be approved, hard money loans have quick approvals which mean they can be approved and secured relatively quickly. Quick approvals can be convenient if you’re using the money for a building project and need the funds quickly.
In conclusion, there are several things you need to know about hard money loans. These include the fact that hard money loans are secured with real estate, they can come from a range of people, and they can be secured relatively quickly. These are just a few of the things you need to know about hard money loans.