By: Andrea Bell
Are you interested in real estate? Buying properties, renovating them and then quickly selling them off is a lucrative way to earn money. Unless you have enough money to finance it on your own, the chances are that you will need to apply for a loan. The bad news is traditional lenders might not provide you with what you need.
If you have ever been denied a traditional loan and want to explore other options, hard money lending is something you need to explore. For this purpose, you must know everything you can about hard money lenders.
What are hard money loans?
Before we delve into the lenders, it is important to understand what hard money loans are. These loans are short-term by nature. Generally, they last for a year.
Similar to mortgage loans, they are backed by real estate as well. In layman Term, this means that you will get the loan depending on how much the property is valued at, rather than on your degree of creditworthiness.
Compared to traditional loans, these are much easier to obtain. However, this comes at the expense of high cost of borrowing (also known as the interest rate). Banks do not deliver these loans. Instead, private lenders provide them to borrowers. These individuals are known as hard money lenders.
Types of properties that secure hard loans
Don’t let a denial from traditional lenders stop you. Seek out hard money loans for your investment.
Andrea Bell is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.
Find her on Twitter:@IM_AndreaBell