Once you hear the words “hard money loan” (or “private money loan”) what’s the first thing that goes through your brain?
Shady searching loan providers whom conduct their company in dark alleys and fee sky-high interest levels?
Some bad apples tarnished the hard money lending industry when a few predatory lenders were attempting to “loan-to-own”, providing very risky loans to borrowers using real estate as collateral and intending to foreclose on the properties in prior years. Luckily for us, these kind of difficult cash lenders don’t exist in today’s market, however some recurring stigma stays for a few real-estate investors who possessn’t recently used the solutions of a professional money lender that is hard.
In this specific article, we shall look at the basic principles of difficult cash loans, including: