Hard money loans have a unique reputation. Experienced real estate investors who have used them understand their importance. People who have not utilized hard money loans may think of high interest rates and exorbitant fees.
The good news is most hard money loans can be a useful tool to fund your real estate investment transactions quickly and efficiently, giving you competitive advantage in any real estate environment.
What is a Hard Money Loan?
A hard money loan is a short-term loan, usually 12 to 24 months in duration, from a private lender who focuses more on the equity in the property rather than the creditworthiness of the borrower.
In a traditional loan scenario, the lender focuses on your ability to repay, by looking closely at your credit score and debt-to-income ratio. They also look at the equity in the property.
How Does a Hard Money Loan Work?
Hard money lenders do a lot of research on the underlying value of the property. In return for funding quickly and/or lending to someone with lower credit, they want security that there is substantial equity in the property in case a borrower defaults on the loan.
Hard money loans have shorter terms than traditional loans, and usually have higher interest rates and fees. Most borrowers pay off their hard money loan by selling the collateralized property or refinancing with a traditional lender.
How Much Equity Do I Need to Have in My Property?
Hard money lenders vary in their requirements for a down payment to purchase or the equity in the property to refinance. Some lenders want as much as 50% equity or money down, others are satisfied with 20%, and some don’t require any equity at all. However, the more equity in the property the better the terms of the loan will be.
Are Hard Money Loans Safe?
Hard money loans from a reputable lender are just as safe as a mortgage from your local bank. The difference is hard money lenders provide the necessary funds much quicker than a traditional lender.
Hard money loans usually close within a week or two, giving you rapid access to the funds needed to compete with cash buyers in the real estate market. For more information, please visit www.wilshirequinn.com or call 619-872-6000 to speak with a Wilshire Quinn loan representative today.
- Funding typically in 5-7 business days
Loan Amounts from $200,000 to $20,000,000
- Interest Rates from 8% to 10.5%
Loan Term: 3 – 24 months
Commercial & Residential (non-owner occupied) Real Estate
- Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
Foreign National Loans Available
About Wilshire Quinn
Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.
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