Various Things you should know about Hard Money Lending as an investor

1
Various Things you should know about Hard Money
Lending as an investor
2
Contents

• Introduction
• Requirements of Hard Money Loan
• Types of lenders in the market
• Security
• How to choose lenders

3
Introduction

• Hard money is the money that is offered by
  private investor depending upon the value of the
  property and not the borrower.
• It is very easy to get hard money loan and the
  reason why it is called hard because you need to
  submit hard assets like property or land.

4
Requirements of Hard Money Loan

• The typical requirement to obtain hard money loan
  is very simple and it is not hard like other
  traditional lenders requirement.
• Hard money lender will not ask your job status or
  credit history to offer you loan.
• They check whether your property is good enough
  or not and check whether they can obtain more
  profit on your property.

5
Types of lenders in the market

• Business Lender - Offer loan based on your
  business. They will look for the income or cash
  flow you obtain from the business.
• Commercial Lender - Offer loan based on the
  assets, in particular commercial property.
• Residential Lender - Offer loan based on your
  house such as single family houses, duplexes and
  triplexes.

6
Security

• The security in offering hard money loan depends
  up on the property and not particularly based
  upon the borrower.
• There are some hard money lenders who ask for the
  background details of the borrower and also ask
  for the credit report and income, but they are
  not termed as true hard money lender.

7
How to choose lenders

• The lender can be divided into two, i.e. one who
  offer loan based on the real estate and other one
  offer loan based on other things except real
  estate. You can choose the lender who suits your
  needs best.
• If you want hard money loan for your business and
  you want your business to be secured against real
  estate then you need to choose the lender who
  offer loan on property and not in business.