Real Estate Private Hard Money Loans
Get Hard Money Real Estate Financing from an Experienced Mortgage Lender, Greatland Financial

A Private Money loan, commonly known as a hard money loan is a specific type of asset-based loan financing in which a borrower receives funds based on the value of a parcel (home or property) of real estate. Whereas hard money often refers to not only an asset-based loan that can help borrowers with less than perfect credit, but in some cases can be a borrowers loan option that can help counteract distressed financial situation such as arrears on the existing mortgage or bankruptcy and foreclosure proceedings are occurring.

Many Private Money mortgages are made by private investors. Usually the credit score of the borrower is not important. The loan is purely against the collateral of the property. Typically the maximum loan to value is 65%.

When you have a strong borrower, an investment property is expected to debt- service on its own. You will likely come across borrowers who invested in properties with break-even or negative cash flow, assuming that the future appreciation of the property would offset the negative cash flow in the early years of ownership. This creates a financing nightmare for the borrower, often forcing them into a hard-money or private party loan.