If you’re a real estate investor or business owner looking to purchase or develop a property with external funding, then hard money loans might be just the solution.
Contrary to the name, hard money loans are actually quite easy to obtain. Also known as private money loans, they are ideal for entrepreneurs without proven experience, low-credit borrowers, and people who want to purchase real estate for business reasons.
Keep scrolling to learn more about hard money loans and how they are a reliable source of funding for real estate investors.
What are hard money loans?
Hard money loans are similar to other high-interest short-term loans—most last less than a year. However, since these are private money loans, the terms can be negotiated. Often, lenders are willing to make small changes to the terms, which gives borrowers additional flexibility with the repayment period or rate.
At Insula Capital Group, we also offer low-cost, long-term loans for residential projects, such as our Residential Rental Program (Buy & Hold). These loans can extend up to 30 years and come with fully amortized payment options so that you get long-term financing even with a low credit score.
When to take advantage of a hard money loan?
Hard money loans aren’t suitable for all deals. They work best when a quick loan is needed for a short period of time or when conventional bank financing isn’t available. They are ideal in situations such as:
- You’ve identified a property with excellent potential that you need to purchase in a short amount of time to make a good profit on the investment.
- You want to upgrade a distressed property that has a fix and flip potential, but you don’t have the funds you needed to carry out the renovations.
- You are unable to get approval for a loan from a bank due to short credit history or poor credit score.
- You don’t want to spend time putting together extensive documentation for a loan that’ll take months to process. Hard cash loans come with short and simple loan applications.
- You need quick access to hard cash due to liquidity issues.
Are you looking for private money loans in the United States? Find top-rated financing solutions at Insula Capital Group. We offer attractive loan programs for single-family homes, multi-family buildings, fix & flip properties, and new construction projects.
We’re dedicated to helping business owners and real estate investors get access to low-cost capital at competitive rates nationwide. Enjoy seamless loan approvals with minimal documentation and no prepaid penalties. Reach out to us today with information about your hard money real estate loan, and we’d be happy to help.