Hard Money Lenders Near Me
Neal Business Funding is a nationwide hard money lender that can provide you with the funds you need anywhere in the U.S. We work with Real Estate Investors all over the country. Its very common to search for hard money lenders near me, and we can understand you wanting to deal one on one with someone when looking for your loan. You can be sure at Neal Business Funding you will get personalized service!
Funding in as little as 10 days!
90% Financing for Property
100% Financing for Rehab Costs
Terms up to 13 Months
We make the process easy to finance your fix and flip, rental properties and multifamily projects!
Fix and Flip loan rates start at 7.99%
When you think of “Hard Money Loan”, what comes to mind? Is it shady guys who loan out of their own bank account and send out the leg breakers if you don’t pay up? HaHaHa! Well in days past there may have been a few lenders like that but they don’t exist in todays market and the majority of hard money lenders you will see today get there money from legitimate sources like hedge funds and private money.
If you are flipping real estate, or need short term cash so you can buy an investment property, hard money loans are a great choice. These loans are ideal because you can get the money quickly so you can close the deal or start on the renovations. Hard money loans are very different from traditional loans since they are designed to be repaid quickly. Read on to learn what is a hard money loan and how you can use it to your advantage in your real estate deal.
What is a Hard Money Loan?
A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Typically the asset is Real Estate and most of these loans are used to buy and rehab properties to resell or refinance therefore, Hard money loans are short term loans with real estate as the collateral. Instead of going to a traditional bank to apply for the loan, you use a private lender or investor. Most hard money loans have a term of one year so you need to be ready to sell the property before that time is up so you can pay the loan back. Sometimes you can extend the length of the loan if you need to spend more time working out the deal.
Most hard money loans are based primarily on the value of the property. Your personal credit does not play a large part of the approval process but it does hold some weight. Neal Business Funding requires a 600+ credit score for most of our hard money loans.
How Does a Hard Money Loan Work?
Once you take out the loan you can expect to pay interest only payments or payments of interest and pricipal. At the end of the loan term you will have to make a balloon payment, so make sure you have a good business plan so you know you are going to make money. You must have enough money in the bank at time of closing to be able to make the payments while you have the loan. If you dont have sufficient funds to show the lender, you will not get the loan.
The amount of money you get is going to depend on the value of the property you are investing in. You can either be in the process of buying the property or you can already own it. The main concern of the hard money investor is going to be the value of the home.
Your credit score isn’t always an issue since the collateral is the house. If the property has enough equity it is going to be easy to get one of these loans no matter what your credit score is. Hard money lenders are much more likely to say yes to loans that the banks won’t touch.
What types of property qualify for hard money?
Typically we lend on single family, multifamily, retail or industrial. Non-Owner Occupied buildings are primarily what these loans are intended for. These loans are not to be used for a primary residence. You should be able to get this type of loan on most any non owner occupied property. You will have to make sure that the lender offers loans on the type of property you are interested in because some hard money lenders only specialize in certain types of loans. One thing to keep in mind is that you cannot live in the property. You also have to make sure that the loan is going to be in the first position.
How Do You Get The Most Out Of A Hard Money Loan?
When you are thinking about taking out a hard money loan you need to make sure that the situation you are using it for is appropriate. Hard money loans are appropriate for fix and flips since you pay it back as soon as you sell the home you are working on.
Hard money loans are also appropriate for land loans. You might be planning on buying a piece of land that you can develop. Hard money loans are perfect in this situation. Hard money loans are also very appropriate when you are doing construction.
You might also want to choose this loan if you have credit issues since your credit isn’t always a factor. Due to the quick closing ability of these lenders, these loans are perfect when you need to act fast so you don’t miss out on buying or investing in the right property.
Only take out a hard money loan if you need money fast and be prepared for the balloon payment at the end of the loan. When you find a property that you can’t pass up, the hard money loan makes it easy to acquire since you can often get the money in a week. Some lenders can even approve a loan the same day. A good lender is going to close fast so you can get started with your project.
If you are flipping houses, you definitely need to consider hard money loans. They provide you with fast cash at a competitive interest rate so you can start working on your loan quickly. These loans can help your real estate business become more successful.