How to Use a Hard Money Loan to Buy Real Estate


Finding a way to finance your real estate investments is the key to ensuring you can close on time to take advantage of great moments in the market.

One way to speed up your closing time while gaining a lot of flexibility is to investigate buying real estate with a hard money loan. Hard money lenders use the value of a parcel of real estate as a way of valuing the loan like traditional commercial real estate lenders, but the features of that loan and its timeline to maturity are quite a bit different.

Core Features of Hard Money Loans

  • Loan terms are six months to three years, with 12 months as a standard
  • Properties can be funded at their after-repair estimated value
  • As little as 10 percent down is needed to make a purchase with hard money loans
  • Borrowers typically pay interest-only payments until a lump sum payoff when the property sells
  • Loans close in as little as 7-10 days

These features make hard money loans for real estate very attractive, especially for those investors who are looking to rehabilitate promising properties before returning them to market. They can also be used to renovate properties and sell them after holding them as income properties, but funded properties cannot be owner-occupied.

Finding Private Money Lenders Los Angeles

If you are looking for hard money loans, you need to understand that most hard money lenders are private organizations that offer niche industry funding for exactly this kind of investment. Working with the best means checking out their offerings and their company history. For more information, contact North Coast Financial and start working with a local private money lender who understands your funding needs.


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