by Renegade98

Using Hard Money to Fund a Construction Project

You are ready to start construction, but the loan process is slowing you down. You should consider obtaining a hard money loan to get going on your project today. Hard money loans can be obtained quickly and with little upfront cost to you. What are hard money loans and how can I obtain one?

Hard money loans are a type of real estate loan that is provided by private investors, through brokers. The collateral for this type of loan is the value of the property. In the case of a construction loan it is the improved value of the property. In order to provide security to the lender, the hard money loan will have higher interest rates than a conventional loan, and will be limited to around 65% of the improved value of the property. The lender will also only lend from the first position, so that in the event of a foreclosure, they are the first party to recover their investment.

Hard money loans are short term loans, so you need to have an exit strategy before obtaining one of these loans, such as a plan to sell the property when completed or to refinance the property through traditional institutions.

Although the loan is limited to 65% of the improved value of the property, construction loans will generally cover all of the costs of construction, assuming that costs for construction are less than the value of the property upon completion.

If you have a business that is growing at a rapid pace and you are ready to expand by constructing a new building or updating your current building. Obtaining enough capital to obtain traditional financing for this construction can take a while. In this case, it would be worthwhile to pay a higher interest rate for a hard money loan, and be able to start construction within days.

Hard money lenders are available all over the country; a web search will turn up many lenders available in your area. Several websites will give you access to multiple lenders. Before approaching a lender, have your plan in place. Have complete details on all of the costs associated with the construction project, an appraisal of the completed property, as well as details on your exit strategy. Provide this information to the lender(s), and you should receive approval within a day or two, and be able to close on the deal within a week.

HMBCribs.com
Hard Money Bankers, LLC
Your Hard Money Lender

Calgary based Drummer Realty and Property Management president and CEO Sean Siemens discusses the benefits of Drummer’s experienced and professional approach to property management and realty for home investment owners.

by Renegade98

Article by Chris Jenkins

Property investors need hard money for real estate investing Tampa, Florida. They have to be able to secure an asset-based loan that commands high interest. Such loans are secured by the property itself as the collateral. Generally, the LTV (or Loan to Lender Value) is in the vicinity amount of 65% to 70% of the collateral value. But there are HMLs or Hard Money Lenders that give as much as 100%.When one is seriously considering to invest in Tampa, perhaps engaging the services of a good real estate lawyer and an accountant can make life easier. To experienced investors, they know how valuable these professionals are. The real estate counselor can help set-up the business and he certainly knows the legalities of it all. The accountant can liaise with the Board of Equalization (the state board for local property taxes) as well as to the lender bank or the HML, and to the licensed real estate broker. Should there be any Annual Cap or maximum interest rate on an adjustable mortgage rate that too, is within the accountant