Emergency Money Solutions

A hard money loan is an asset based loan secured by the value of the land or property that you own.

• Hard money loans have a much higher interest rate than traditional loans.

Your credit score and credit rating aren’t important when securing a hard money loan because the property you own is the security for the hard money lenders who are also covered by only giving you up to 70% of the property value as a hard money loan.

The reason the hard money loans have a high interest rate and are worth only 70% of the market value of the property is that during the real estate crashes of the 1980s and 1990s the hard money lenders had their fingers burnt when they overestimated property values on the loan applications and were left short changed when it was time to sell the property and they didn’t get their loan amount back.

As you can imagine they would have had their fingers burnt again in the last few year’s with the amount of foreclosure properties having to be sold at a loss.

It’s advised that if you need a hard money loan that you get one with the help of
a professional real estate attorney to ensure that you don’t give away your property with a late payment or default.