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Short-term financing is possible, irrespective of past credit history, when secured by real estate or some other financial asset. The determining factor of whether an asset qualifies for a hard money loan program is if the asset—real estate asset, tangible asset, or intangible asset—has a target market that can be identified in which to liquidate it. Different lenders prefer different kinds of assets, from real estate to securities to accounts receivables.
Examples of Hard Money Loans:
Acquisition Loans:
To purchase property through loan proceeds, an acquisition loan is utilized.
Asset Based Loans:
These loans are intended for any goal and are secured by collateral. In the case of bankruptcy and foreclosures, they provide funding on real property assets until other financing is available or until the sale of assets.
Construction Loans:
Loans used in constructing a building, or for improving real property are construction loans. The land and improvements serve as collateral. Reserve construction accounts maintain money disbursements
throughout the construction process.
Acquisition & Development Loans:
These loans are needed to both buy and develop real property to an improved state. Loan-to-value is figured as to the improved value.
Bridge Loans:
Bridge loans are for short durations, until a stable method of financing is secured. Bridge loans are a smart solution to timely business opportunities or acquisitions, because they permit an investor or buyer to act promptly.
Raw Land Loans:
Raw land loans are loans on unimproved property. Raw land is typically priced at a 90-120 day quick sale amount to establish loan-to-value ratios.
Rehab Loans:
Rehab loans are used to acquire an existing commercial property or home with the intent of upgrading or repairs.
Non-Conforming Loans:
Non-conforming loans fail to meet the lender standards.
Sub-Prime Loans:
Sub-prime loan programs permit access to financing for borrowers with poor credit ratings or low incomes. Known as "B", "C", or "D" loans, the sub-prime loans are typically associated with larger fees and interest rates. To resolve the debt, a borrower must often pay a substantial final payment, termed a "balloon" payment. This category of loan is also likely to carry a penalty for prepayment.
Sub-prime commercial real estate finance programs offer some of the following considerations:
*Commercial loans up to $15 Million
*Credit scores below 500
*Foreclosure/bankruptcy/bail-out programs
*Loan-to-value up to 75% (variable by state)
*Cross liens and blanket mortgages
*Loans to foreign nationals CLICK HERE TO APPLY
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