Hard money loans.

**jmorrison** · 01-01-2008, 08:23 PM

Ive heard many times that hard money lenders will let you make interest only payments. Im not sure what this means. Can anyone help, or may be give me an example?

**Bill Wise** · 01-21-2008, 03:34 PM

hard money lendes loan on the hard asset and usually not more thab=n 70% including repairs. They usually require borrowers to pay interest monthly. If loaning on real estate, they will only require the interest e paid but loan money for 6-12 months at very high rates.
Bill Wise

**HardMoneyDr** · 02-01-2008, 12:21 PM

Originally Posted by jmorrison

Ive heard many times that hard money lenders will let you make interest only payments. Im not sure what this means. Can anyone help, or may be give me an example?

Hard money lenders will typically lend 65% of the " as is " value of the real estate as judged by their appraisal of the property. Raw land will be a much lower LTV( if you can even find a lender that will do that now) The loans are typically interest only loans with terms from 6-36 months and 12-18% plus points. Keep in mind that all due diligence fees, ie. the appraisal, the lenders attorneys fees, title fees, any background/credit checks, and any environmental reports are typically paid up front by the borrower and are not refundable if the loan does not close. If one ever considers a hard money loan, make sure you have a firm exit strategy in place.

**thedeallocator** · 02-04-2008, 10:50 PM

Hard money loans were popular amongst real estate investors, but are becoming less popular now as investors are not really sure about property values. Some areas are seeing a significant price/value correction, so you really want to be very careful, if you decide to take a hardmoney loan in the current market conditions.

**HardMoneyDr** · 02-09-2008, 11:53 AM

Originally Posted by thedeallocator

Hard money loans were popular amongst real estate investors, but are becoming less popular now as investors are not really sure about property values. Some areas are seeing a significant price/value correction, so you really want to be very careful, if you decide to take a hardmoney loan in the current market conditions.

The demand for these loans may have waned for some; however, since banks lending standards have tightened substantially, there is still great demand nationwide. As far as the price/value correction, you have a very good point - this is really indicative for all borrowers, lenders, and all investors in general. In a lot of markets, commercial comps cannot be relied upon at all for valuation.

**labailout** · 03-17-2009, 02:31 AM

Hard money will become mor and more popular as we climbe out of this real esate crisis (2010-2011?) In today economy relying only on conventional financing can be fatal to a real estate agent. The only drawback is the requirement for good equity position 60-70% Ltv or less.

**labailout** · 03-17-2009, 11:32 PM

Hard money will become more and more popular as we climbe out of this real esate crisis (2010-2011?) In today economy relying only on conventional financing can be fatal to a real estate agent. The only drawback is the requirement for good equity position 60-70% Ltv or less. find out more log into my website

**indi456** · 03-19-2009, 04:33 AM

Hard money loans were popular amongst real estate investors, but are becoming less popular now as investors are not really sure about property values. Some areas are seeing a significant price/value correction, so you really want to be very careful, if you decide to take a hardmoney loan in the current market conditions.

**thomas12** · 03-20-2009, 11:10 PM

Hard money lenders certainly ask for more interest amount monthly, sometimes they are very high which is why it is difficult for borrowers to take loans!

**danford_paul** · 03-24-2009, 12:38 AM

hard money loans are like pawnshops... when you pawn your jewelry, every month you'll pay for the interest.. the only difference is, interests in hard money loans are too high..