Navigating the world of financing in the real estate market can be a daunting task, especially for real estate investors.
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.
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.
Investors looking for a short-term loan from private lenders can contact real estate agents, title agents, closing attorneys, and other investors for leads.
There are a handful of reasons, including needing the cash quickly to purchase a property.
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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