Private Money Loans ( Hard Money Loans )

Why use a private money real estate loan?

	They can be extremely fast closings usually within 5 to 10 days
	They are equity driven by value in real estate not based on credit
	They can have payment reserves built into the loan so no payments are due during the term
	They can be used to buy properties banks will not finance due to many repairs necessary
	They can have the rehab money included in the loan to fix up the property

All of the above loans are based on a 65% loan to value of the finished or after repair value of the real estate purchased or owned. We can include the purchase price, the fix up, and the payment reserves in the loan if it falls within the 65% LTV of the fixed up value. We also secure the loans by additional collateral. That means if you own other real estate that has equity in it then we can use that property as cross collateral and secure a loan for you.

For example: Let's say you want to buy a property for 125K and it will take 20K to fix it up including a new kitchen, new windows, carpet, paint, and landscaping. You plan on having the property for 3 months and selling it for a profit. The home will sell for 245K after the rehab work is completed. We can make a loan of $159,250.00 which would cover the purchase price of the property, the rehab work, and the loan closing costs.

Typically the loans are at 14% interest with monthly interest only payments due the 1st of each month unless payment reserves are included in the loan and there are loan fees ranging from 6% to 8% of the total loan amount. These are short term loans usually with a balloon due in 12 to 24 months of the entire loan amount.

Typically private real estate loans are used in difficult situations where short term solutions are needed. Mostly for rehab opportunities and construction loans. We can also refinance older manufactured homes or land purchases. Or any refinance scenario of improved property that is owned currently with loan to values under 65% or vacant land at loan to values under 50%

We are also a full service mortgage company and have the ability to help you refinance out of a private money loan with a conventional loan or refinance into another private loan when the balloon is due if necessary.

Have a loan specialist contact you today!