| Using Hard Money in Real Estate Transactions | | | | conventional financing or flips the property to an end |
| Definition of a Hard Money Real Estate Loan: | | | | buyer. |
| A hard money real estate loan is a short-term loan | | | | Who Would Use a Hard Money Loan? |
| that is used for the acquisition of both residential and | | | | Hard money loans are ideal for investors who either |
| commercial real estate. Also, this type of financing is | | | | need to take down a property quickly or cannot obtain |
| used with land transaction. Currently, many investors | | | | conventional financing. This type of real estate is not |
| use hard money loans to take down bank owned | | | | taught at college or at real estate schools. The Real |
| properties since once can act fast. Normally, a hard | | | | Estate and Beyond Network specializes in hard money |
| money lender will charge 1-3 points at closing. Then, | | | | loan strategies. Hard money lenders loan on the |
| interest rates can range from 15-21%. The term of the | | | | property itself and the character of the borrower. |
| loan is typically 6 months or less until investor obtains | | | | |