About Investment Property Loans
A hard money loan for an investment property is a private loan made to a real estate investor for the purpose of purchasing or refinancing a rental home or other income-earning real estate asset. These types of loans are always secured by the investment property itself, generally by a deed of trust. These loans are typically made for a longer term than an average hard money loan but may also carry a lower rate of interest than shorter-term loans. Investors who take these types of loans are generally unable to receive a traditional bank loan or must close quickly and are therefore willing to pay a higher rate of interest and/or contribute more cash at closing than with a traditional bank loan. Due to the higher rate of interest, the borrower will often intend to refinance the loan at a lower rate at some point in the future.
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