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4 types of Hard Money Loans

By G. David Lapin On December 4 2023

Four key Hard Money Loan Categories, Spotlighting Their Unique Perks.

Navigating hard money loans can be confusing  but grasping the nuances of each type simplifies the journey. This guide explores four key hard money loan categories, spotlighting their unique perks.

    Transactional Hard Money Loans:
    Ideal for property purchases, these short-term loans facilitate buying, fixing, and selling. Swift approvals, an easy qualification process, and higher interest rates make them advantageous.

    Bridge Hard Money Loans:
    Offering swift cash access, bridge loans streamline the sale and purchase process, eliminating the wait for an existing property's sale. Benefits include increased financing flexibility, rapid approval, and lower risk compared to transactional loans.

    Rental Hard Money Loans:
    Tailored for estimating renovation costs in property development, these loans provide quick access and flexibility. Features include an repayment options, expedited loan acquisition, and a lower likelihood of payment penalties.

    Commercial Hard Money Loans:
    Ideal for ventures in commercial real estate, these loans provide substantial amounts for larger projects. Their versatility extends to diverse property renovations, coupled with favorable Loan to Value (LTV) ratios.

Understanding the features and advantages of each hard money loan type is crucial in this diverse landscape. Whether you're a property flipper, developer, or commercial real estate enthusiast, choosing the right type is key to a successful venture.

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