Hard money lenders are companies that offer a specialized type of loans that are backed by real estate. They lend short-term capital (also called bridge loans) that provide funding based on the value of the real estate using the subject property as collateral. Hard money lenders tend to focus on the value of the collateral property rather than the borrower’s ability to repay based on their income or assets, which is typical with other lenders.
Hard money lenders generally charge higher interest rates than banks because they fund deals that do not conform to normal bank standards. They also offer a range of requirements on how much they will lend (loan to value), what types of real estate they will lend on (commercial, residential, multi-family, land) as well as minimum and maximum loan sizes. Hard money loans are generally a shorter term than conventional loans. Because of the shorter term, borrowers must ensure that they have the resources necessary to pay off the loan or refinance the loan before it becomes due.
Ace Realty Partners has a network of Hard Money lenders that strive to work with you.