Lenders offer hard money financing, which is where the loan is secured by the property’s value. Hard money loans are offered by private money lenders, and are not based on credit scores. Real estate investors who are looking to buy, flip, renovate, or refinance loans can use hard money lending as a source of capital. The real estate market in Florida is flourishing and hard money loans are in high demand.
Florida’s Hard Money Lending Process
The first step to getting hard money lenders in Florida is done. Private money lenders such as Capital Funding Financial offer loans to investors in real estate. These lenders offer financing solutions for fix-and-flip loans, rental loans, construction loans and other types of loans.
After a borrower has found an intermediary to help him or her, the next step is applying for a loan. Hard money loans are typically easier to qualify for than traditional bank loans. Hard money lenders might consider the property’s value, the borrower’s experience as an investor in real estate, and the borrower’s exit strategy.
After the borrower has been approved, the lender will provide loan terms and conditions. The terms can include the loan amount, interest rates, and length. Hard money loans in Florida typically have lower interest rates than traditional bank loans, and a shorter term. Lenders will require collateral or security such as a mortgage to secure the loan.
Florida’s Hard Money Lending Advantages
Both lenders and borrowers have the advantage of hard money lending. The faster funding is a benefit for borrowers. Hard money loans can be funded in 24 hours. Traditional bank loans can take weeks, or even months. Hard money lenders don’t have as strict requirements for qualification, which makes it easier for borrowers qualify for loans. Hard money lenders offer greater flexibility in terms, which allows borrowers to tailor the loan to meet their investment goals.
Florida real estate investors have a great source of capital in hard money lending. Finding a hard money lender in Florida is the first step to getting a loan. Then you must agree to terms and conditions. While hard money loans offer many benefits, including faster funding and fewer qualification requirements, they also come with a few drawbacks such as higher interest rates, higher default risk, and higher default risks.