Private Money Loans are asset-based financing through which a borrower receives funds secured by the value of a parcel of real estate. Private Money Loans differ from traditional bank financing because they offer greater leverage to the borrower and they are able to close and fund deals faster. Real estate investing is a very competitive industry with multiple investors sometimes bidding against each other for the same property, so the ability to have the funds quickly puts the real estate investor at an advantage over their competition.
Private Money Loan terms typically last up to 24 months with interest only payments made on the loan until it is paid off by the borrower; upon the sale of the property. Private Money Loans are used to lend on non-owner occupied properties and most hard money lenders will lend on the ARV, or After Repair Value, of the home. The ARV is an important metric and is one of the determining factors when a lender looks at the quality of the property.
Up to 90% LTV and 100% rehab costs
Fico as low as 620