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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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Types of Private Money Loans

Many property buyers look for alternatives to the big bank loan process that can take a long time to fund and often require excessive paperwork. There are many different types of special financing available. This is a short overview of some of the options US buyers have today. Hard money refers to...

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What is a Deed of Trust?

A deed of trust, also called a trust deed, is a document that represents a real estate purchase where there is a loan involved. Many people who have a deed of trust simply refer to it as their mortgage or their home loan. But having a deed of trust is technically a little bit different from that. ...

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Documents in a Hard Money Loan

While hard money loans are known for funding faster than more traditional mortgage loans and they often require much less paperwork, there is still some paperwork and there will be a closing. It's a good idea to prepare, going in with an understanding of what will happen and what kinds of documents...

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