Using Hard Money Lenders As A Real Estate Investor

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Navigating the world of financing in the real estate market can be a daunting task, especially for real estate investors.

But thanks to hard money lenders, you can get credit for your next property or project without dealing with  a bank.

What Is A Hard Money Loan?

A hard money loan is a short-term loan from a private lender. It is non-conforming, meaning it does not meet the mortgage guidelines Fannie Mae and Freddie Mac set forth.

How Do Hard Money Loans Work?

Unlike traditional loan approval, getting approved from a hard money lender is less dependent on the borrower’s ability to pay it back and more on the property’s value.

Where To Find A Hard Money Lender

Investors looking for a short-term loan from private lenders can contact real estate agents, title agents, closing attorneys, and other investors for leads.

Why Real Estate Investors Use Hard Money Loans

There are a handful of reasons, including needing the cash quickly to purchase a property.

Final Thoughts

If you’re dealing with bad credit or are an investor looking to build a rental portfolio, using hard money lenders is a smart option.

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