Guide to Hard & Private Money Lending
What Is a Hard & Private Money Loan?
Hard money loans (aka, private money, bridge or trust deed loans), are a form of short-term financing secured by real property; usually real estate.
They are typically funded by individuals or companies as opposed to traditional mortgages which are financed by lending institutions such as big banks or credit unions.
When underwriting a loan, a hard money lender is primarily focused on the value of the underlying asset being used as collateral rather than the many factors banks use to determine if a borrower qualifies.
Once considered a last resort funding option for real estate investors, hard money loans have gained in popularity due to federal regulations and mandates preventing predatory lending practices in the industry.
Continue Reading Weekly Loan Digest