FAQs

A: Hard money lenders primarily rely on collateral instead of relying on your credit rating in determining whether to make a loan.

A: Yes, a primary requirement for attaining a hard money loan are the funds you’re investing in the property and a cash reserve.

A: Private lending approval primarily comes from the value of your asset(s) or collateral, and not your credit score. Accordingly, your credit score is not as important in private lending as it would be in traditional lending.

A: A private money lender is a non-bank company (or individual) that loans money typically for the purpose of funding a real estate deal.

A: Hard money loans are a short-term borrowing aid (typically 1-3 years), not a long-term funding solution. You’ll need to plan an exit strategy.

A: The speed, structure, and better approval rates. The ability to fund the loan quickly can be the difference between winning and losing a deal.

A: There are two different types of bridge loans, open and closed bridge loans. It’s important to understand them both in order to pick the best choice for your personal situation.

A: Construction bridge loan lenders will typically require you to have sufficient cash reserves to cover certain contingencies. Among other things, they may also require you to withhold a certain amount of your loan as an interest reserve rate.

A: Net worth is one of the most important metrics in determining your eligibility for a bridge loan. In many cases, loan amount may be equal to your net worth.

A: You should look for a private lender that offers you flexibility, is willing to communicate, has a good reputation, and has a competitive interest rate

A: Washington, Oregon, Idaho, Utah, Wyoming, Colorado, Texas, Tennessee, Virginia, Washington D.C., North Carolina, South Carolina, Georgia, Florida, Maryland, and Pennsylvania.