What is a Hard Money Loan?

by | Feb 5, 2020 | Private Lending

The words Hard Money surrounded by other words.Hard money loans allow individuals who own property to bypass traditional lenders and obtain funds easily and rapidly. Hard money lenders provide loans to property owners based on the value of their property, not their credit score. A hard money loan is a viable financing source when borrowers can’t rely on banks or other types of lenders to provide them with the cash they need.

How Does a Hard Money Loan Work? 

Unlike traditional loans involving lengthy examination of a borrower’s credit and income history, hard money loans require only proof of property collateral. How much a borrower’s real estate property is worth is much more important to hard money lenders than credit scores. In most cases, borrowers receive funds with seven days of applying for a hard money loan. Depending on several factors, such as the value of a borrower’s collateral property, hard money loans may be approved in 24 hours. Alternately, approval or denial of bank-funded loans can take as long as two months. Hard money loans are designed to be paid back within six months to a year for maximum benefit to the borrower. Modifications to payment schedules may be possible if extenuating circumstances prevent hard loans from being remitted according to the original schedule. Wildcat Lending offers several loan programs to address the needs of borrowers who want funds quickly but may have less than stellar credit or insufficient income history. As a leading hard money lender, we look beyond certain issues that cause most lenders to deny loans. If you have adequate equity invested in a property and can show the loan will be repaid, contact us today.

 

Why Take Out a Hard Money Loan?

Common reasons why people depend on hard money loans for their immediate financial needs include:

  • Real estate property fixes and flips
  • To strengthen offers made on real estate for sale
  • If you must act quickly to purchase property
  • If you want to reinvest equity from existing properties to new properties
  • If you want to buy real estate at cash-only auctions

As all professional real estate investors know, negotiating lower purchase prices when you have cash on hand is an almost effortless endeavor. Cash combined with shorter escrow times and quick closes can be a great motivator to get a person to sell the property you really want. Builders and contractors depend on hard money loans to quickly obtain the funds they need to purchase lots, construct homes or commercial buildings and promptly sell this real estate in order to quickly pay off their loan. In fact, taking out a hard loan is one of the simplest ways to make money.

 

Wildcat Lending is Ready to Approve Your Hard Cash Loan

 

We not only offer competitive interest rates and flexible payment schedules, but we can also work with you to re-establish your credit score. Use our convenient online lending form to complete your application for a hard money loan today. It only takes a few minutes, and you could be approved within 48 hours of submitting the lending form.

About Us

Meet The Team
Kevin Shipman
Mike Noppinger
Carlo Checri
Gray Cato
Brooks Humphreys

Process

What We Do
Loan Programs
Loan Checklist
Draw Process
Draw Request
Payoff Request

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Contact Wildcat

4800 Dexter Drive
Plano, TX  75093

(972) 525-4777

About Us

Meet The Team
Kevin Shipman
Mike Noppinger
Carlo Checri
Gray Cato
Brooks Humphreys

Process

What We Do
Loan Programs
Loan Checklist
Draw Process
Draw Request
Payoff Request

Media

Social
Blog
Video

Events

Contact Wildcat

4800 Dexter Drive
Plano, TX  75093

(972) 525-4777

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