Do you need a loan fast? If so, then you should consider a hard money loan. If you are unsure what a hard money loan is, watch this video for more insight. This video goes over the basics of hard money for beginners.
In most cases, you will need hard money lenders for property. This type of loan offers quick approvals for house flippers to get in and out of projects while leveraging the most they can. Did you know that in 2020, 5.9% of all home sales were flipped homes? Going this route allows people to flip quickly and avoid going with a traditional mortgage that would take longer to close escrow.
With the help of a hard money loan, you can purchase a property and close within 10 to 15 days, whereas a traditional loan can take 30 days or longer. There are a few important things you should be aware of if this is your first time going through the process.
One thing you should know about is the “LTV” which stands for loan to value ratio. This is important because it determines how much someone will loan you for a property. Another term to be aware of is the pre-payment penalty. This could mean that you will be charged a certain number of payments regardless of when you close.