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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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Legitimate vs Predatory Lenders

Anytime a borrower seeks out alternative or special financing, like a hard money loan, it is extremely important to do the homework. Everyone considering a hard money loan should know what to expect, how to evaluate the options presented and what kinds of documentation will be expected at closing. ...

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Types of Foreclosure

In the United States, there are generally two kinds of foreclosure processes to consider, judicial foreclosure and non-judicial foreclosure. States typically make the rules about which type will be in play on a given property but in some states both types are possible so it is important to understan...

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