When is a Hard Money Loan an appropriate option?

Here are some of the more conventional examples of SC Financial clients who benefit from the use of hard money:

Borrowers who are unable to qualify for traditional lenders due to:

• Poor credit

• Tax liens

• Other liens

• Bankruptcy

• Foreclosure

• Divorce

• Medical emergencies

Borrowers requiring fast funding for time sensitive loans.

Borrowers who are seeking to avoid the delays and complications associated with institutional lending sources

Short term borrowers who only require funding for a minimal period of time.

Real estate investors who will use other property holdings as equity for their loans.

What benefits do hard money loans provide?

• Bad Credit – In order to begin rebuilding  their credit, hard money borrowers can alleviate temporary issues. Successfully making scheduled payments of the equity loan could create opportunities to qualify for refinancing at lower rates after a year or two.

• Speed  - If time is limited, it can make sense to utilize private money, especially to real estate investors seeking to avoid the extensive restrictions and long timelines required for bank loans. 
  

• Equity Loans – Borrowers with significant equity who are looking to convert their holdings into hard money.

• Unconventional loans – Properties or borrowers that don’t meet conventional institutional requirements, due to the condition of the property, or if it is held in probate, trusts, LLC, partnerships or corporations or if it just does not meet initial financing requirements from a traditional lender.