Atlantic Funding Co.

A hard money loan is a type of short-term loan primarily used in real estate transactions. The funds are secured by the property itself rather than the borrower’s creditworthiness. These loans are typically issued by private investors or companies.

Typically, you can secure a hard money loan within days to a few weeks, much faster than traditional bank loans.

Hard money loans are usually short-term, ranging from 6 months to a few years.

An example of a hard money loan would be an investor borrowing money to purchase and renovate a distressed property. Once the property is rehabbed, the investor plans to sell it at a higher value to pay off the loan.

Interest rates for hard money loans are generally higher than those for conventional loans due to the increased risk assumed by the lender. Rates can range from 8% to 15% or more, depending on risk factors associated with the deal.

Hard money loans can be used for various properties, including high-end or luxury residential, commercial, land, and investment properties.

Yes, hard money loans typically come with upfront fees or points, which are a percentage of the loan amount.

Hard money loans can be a good option for borrowers with bad credit because the approval depends more on the property’s value than the borrower’s credit history.

To get a hard money loan, you typically need to connect with a hard money lender, present your investment proposal, demonstrate the property’s potential value, and have a solid exit strategy for repaying the loan. Please fill out an application or contact us for more information on how we can connect you to a hard money lender to fit your needs.

The pros include quicker access to capital, flexibility in terms, and financing options for those with poor credit. The cons involve higher costs, shorter repayment terms, and the risk of property loss on default.

To qualify, focus on highlighting the property’s value, your experience as an investor, and a clear and viable plan for repaying the loan.

Yes, most hard money lenders will require an appraisal or a detailed valuation of the property to ensure the loan amount does not exceed the value of the collateral.

A commercial bridge loan is a type of short-term financing used to bridge the gap for commercial property transactions until permanent funding is acquired or the property is sold off.

An exit strategy is your plan for repaying the loan, often through selling or refinancing the property. Lenders require a solid exit strategy to ensure the loan can be repaid.

Yes, many investors use hard money loans to purchase and improve a property quickly and then refinance with a traditional loan for long-term financing.

Hard money is not technically considered cash; however, in real estate transactions, it can be as good as cash in the sense that it offers quick, streamlined access to funds.

If you need quick financing for a real estate investment, have a significant down payment, and a clear exit strategy, a hard money loan could be a suitable option.