Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#1
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Hard money/private real estate lending?
Anyone involved in any private real estate lending in TV? Any clubs or managers that work in this field?
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#2
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I didn't know what you were asking for so I looked it up.
Hard money loan - Wikipedia, the free encyclopedia
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It is better to laugh than to cry. |
#3
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Yea. It's not a common term outside the industry. Thanks for the link.
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#4
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I know they exist around here since I've actually seen handmade signs on Rolling Acres for hard money loans. Also, forget the name but there is a guy who occasionally advertises on television to purchase or give a loan. I used to be a mortgage broker. Was never a fan of these folks. There was no way most could pay back the loans and was a cheap way to get the property. (Bridge loans are an entirely different kettle of fish and frequently used by builders.)
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Army/embassy brat - traveled too much to mention Moved here from SF Bay Area (East Bay) "There are only two ways to live your life: One is as though nothing is a miracle; the other is as though everything is a miracle." Albert Einstein |
#5
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Quote:
Redwitch... Who would want such a loan? Why don't they just get a loan with low percentage rates???
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It is better to laugh than to cry. |
#6
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For rehabs and investment properties. Higher rates for short term with lower fees. Works well for both parties. They are not used for(ideally) primary residences or un qualified high risk buyers.
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#7
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Quote:
Hard money loans are usually for owners who really can't qualify for anything else, not even a "D" paper loan. The loan is given on the value of the property with no other requirements. There are also hard money loans for investment properties with a slightly better interest rate. For example, there could be HOA legal issues which prevent a homeowner from refinancing. The only choice would be a private investor willing to risk the money and a homeowner financially stable enough to pay more monthly to get cash now for whatever reason. I've also seen it where a homeowner doesn't want to or cannot provide an adequate paper trail for a convential loan. (This doesn't mean anything illegal, just monies have been earned in ways not quite acceptable to a bank. One case was a professional athlete in negotiations for his contract. If he'd waited for the signing, he would have lost his dream home. So, a short-term, hard-money loan was a solution.) There are legitimate reasons for these loans but there are too many slime balls in the business taking advantage of high-equity homeowners who are unsophisticated.
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Army/embassy brat - traveled too much to mention Moved here from SF Bay Area (East Bay) "There are only two ways to live your life: One is as though nothing is a miracle; the other is as though everything is a miracle." Albert Einstein |
Closed Thread |
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