5 Loan Types Offered by Hard Money Lenders

5 Loan Types Offered By Hard Money Lenders

Securing a traditional loan can be a real headache and the approval process can take a long time. If you’re like the hundreds of people who regularly find themselves in need of quick funding to acquire a potentially income generating property, then you’ve probably considered the option of a “hard money” loan.

Hard money loans are short term loans that use assets for security rather than relying on credit scores or financial history. This enables a much quicker turnaround on the loan and reduces the chance of your application being rejected.

Direct hard money lenders provide funds using their own money, so there is no middle man and no need to raise funds. This means you can get the money you need in just a few days, which can make all the difference if you’re competing with other buyers interested in the same commercial or fix and flip property.

You can have your loan set up quickly and easily with interest-only monthly payments and a larger balloon payment at the end of the term so you can move on that income producing property now.

Hard money loans can cover any number of situations, but here are 5 specific types of loans that hard money lenders generally offer:

1. Fix-n-Flip/Rehab–

   These loans cover properties that you purchase with the intention of renovating and re-selling in order to generate income. A Fix-n-Flip loan can cover up to 85% of the purchase price and 100% of the rehab costs from 8% interest with interest paid only on the drawn amount of the loan.

2. Construction–

   This is a shorter term, higher interest rate loan that is taken out to cover the cost of construction on a commercial property.  Construction loans usually don’t exceed 65% of the finished value of the property. With a construction loan, the lender pays money to the contractor on the property rather than directly to the borrower, generally paying in installments as building milestones are reached.

3. Refinances –

   This particular kind of hard money loan can be used to pay off an existing mortgage loan with more favorable interest terms. The terms of the old loan are replaced by the new loan, potentially saving the borrower a great deal of money in the long run. They can be used for either personal property or commercial properties. With a cash-out refinance loan, any funds left over after you have paid off your existing mortgage are paid to you in a lump sum to be used in any way you wish.

4. Commercial–

   As its name suggests, unlike other hard money loans a commercial real estate loan is a mortgage loan secured by a lien on a commercial property rather than a personal residence.  Business owners can use commercial loans to finance the growth of their business. Most lenders require a down payment of between 20-30% of the property purchase price.

5. Probate, Estate & Trust–

   This is a unique category of loan that can be used by heirs of an estate that contains real estate that can be borrowed against. The individual heir or heirs receive funds and repay the loan with interest using the estate property as collateral. This is a quick and easy way to access cash before you receive your inheritance if you have an immediate need.

Your Direct Hard Money Source

When you need cash quick, a hard money loan may be your best option. At times like this, Lantzman Lending is your direct hard money source in California and Nevada. With more than 50 years of experience we are prepared to finance a wide range of commercial properties, construction projects or estate loans and will work with each client to tailor their loan to their own specific needs.

As a direct lender we don’t have to go through any other source to secure funding. The money we use to finance loans is our own so we can use it to turn your loan around as quickly as possible. In most cases we can get you the money you need within 4-5 days, but in some cases it may take as little as 3 days. Better yet, we don’t require a detailed check of your financial history and credit score. Simply fill out the application and we do the rest.

That kind of speed can make a huge difference when you’re in serious financial need or if you’re trying to secure a commercial property that has more than one potential buyer. With a quick hard money loan you’ll be able to move now and have a much better chance of securing that long-term income producing property.

We offer a wide range of hard money loans covering everything from multi-family residences to retail storefronts to fix-n-flip properties, all with the quick turnaround time and guaranteed cash you need. When you submit your application, we’ll reply with a quote within 24 hours and begin the necessary paperwork. After all the documents have been signed we’ll wire the money directly to Title.

Don’t let your financial situation get the better of you when a direct hard money loan may be the answer to all of your problems. Get the money you need now from the name you can trust. Lantzman Lending is ready to solve your financial problems today.