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Most Common Types of Hard Money Loans Available Today
Hard money loans
• come from individuals and not typically from traditional lending institutions
• are great for beginning investors who may not have the total amount needed to purchase their property
Most common types of hard money loans
1. Rehab or Renovation Loan
• allows the buyer to purchase the real estate property and to also
make the necessary renovations it may need
• allows the buyer to get a loan for more than the current value.
Most common types of hard money loans
2. Bridge Loan
• a short-term loan that is used until the investor/buyer is able to get
more permanent financing.
• offers immediate cash flow
• are also backed by some form of collateral such as real estate
Most common types of hard money loans
3. Spec Construction Loan
• short for speculation
• contractors, builders and developers will build homes without the
guarantee of sale and are said to be building on “spec”.
• Spec homes are constructed and purchased on a speculation basis.
Things to remember:
1. Make sure that you have some sort of down payment available
Things to remember:
2. understand the terms and conditions of the loan itself
Things to remember:
3. make sure that your budget reflects the true costs of buying the property and all renovation costs, including contingency money
http://reiloanpro.com