What are Examples of Hard Money?
Have you ever heard of the term hard money? Hard money has a few different connotations but is predominately seen in the real estate lending realm. Many real estate investors see great success leveraging a hard money loan, making it a great option to consider before you make your next purchase.
What is a Hard Money Loan?
Hard money can have many different meanings, from political donations to real estate loans. In most cases, the term hard money relates to a specific type of funding provided by a financial institution or lender.
A hard money loan is a type of loan that uses real estate as collateral. Traditional financial institutions don’t issue hard money loans. Individual investors and lending companies are where you can obtain a hard money loan.
Hard money loans do come with higher interest rates and specific terms regarding the collateral. These loans are risker for lending companies, which is why it’s not uncommon to see interest rates almost double of a traditional loan.
Loans are made or arranged by Wilshire Quinn Income Fund, LLC (the “Fund”) pursuant to California Finance Lenders Law license #603J060. The information contained in this message is for informational purposes only and is meant to provide general background information on the Fund and its manager, Wilshire Quinn Capital, Inc. (the “Manager”). Any and all information herein is deemed reliable but is not guaranteed.
What are the Advantages and Disadvantages of Hard Money Loans?
Hard money loans have both advantages and disadvantages that investors need to consider. First, hard money loans are quick. The turnaround time for loan processing can be as little as a few days, allowing you to take advantage of real estate opportunities as they hit the market.
Moreover, there is greater flexibility throughout the process. Credit history isn’t the determining factor for lending. Hard money lenders look mostly at the equity in your property, not what your credit score is. This can be beneficial for investors who cannot secure traditional funding.
However, there are some disadvantages as well. The top disadvantage is high interest rates. Additionally, the lender might be hesitant to fund owner-occupied properties because of the expanded rules and regulations involved. This makes it important to consider the piece of property you are purchasing before pursuing a hard money loan.
What Can Hard Money be Used For?
Hard money loans can be used for a variety of reasons, which include:
- Wholesale Funding – Wholesale flipping deals need to be closed quickly, which is why investors use hard money loans. Wholesale funding also limits the information shared about your financial spread.
- Property Flippers – Like wholesale funding, good real estate flips don’t stay on the market for long periods of time.
- Renovate and Rent – Long-term investors sometimes use a hard money loan to renovate a rental property. This type of hard money loan is financed similarly to a property flip loan but aims to refinance once the project is complete.
Does it sound like you can benefit from a hard money loan? If so, reach out to our team at Wilshire Quinn Capital at 619-872-6000 or you can email your specific loan scenario to email@example.com. We can help you decide if a hard money loan is right for your situation.
- Funding typically in 5-7 business days
Loan Amounts from $200,000 to $20,000,000
Interest Rates from 7.5% to 11%
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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