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Hard Money Loans For Dummies | The Pros Of A Hard Money Loan for Real Estate Investors

Updated: Feb 9

Hard Money Loans For Dummies

Simply said, a hard money loan is a short-term loan backed by real estate. For people who are in a crisis or who cannot obtain conventional financing, this is a high interest, low underwriting loan available. As opposed to traditional lenders like banks or credit unions, Stratton Equities finances these loans. Although the loan period can be extended to lengthier durations of 2 to 5 years, the lengths are typically around 12 months. Monthly interest-only payments on the loan are required.

The valuation of the underlying property serves as the primary factor in determining how much of a loan the Stratton Equities' Loan Officers are able to provide the borrower. The property may be one that the borrower is purchasing or one that they already own and want to utilize as collateral.

Hard Money Loan Summary

  • Rates Starting at 8.74%

  • $100K – $5M

  • Up to 75% LTV

  • Blanket Loan Options Available

  • Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, Warehouse

  • Fixed rates/Adjustable

  • 9-24 Month Terms

  • Interest Only Payments

  • Purchase, Refinance, or Cash Out

  • Foreign Nationals Eligible

  • No Prepayment Penalty Option Available

At Stratton Equities, we are more focused on the worth of the property than the borrower's credit. If the borrower has enough equity in the asset being used as collateral, they can still secure a hard money loan even if they are unable to get conventional financing because of a recent foreclosure or short sale. While a traditional bank may choose not to work with you, Stratton Equities works hard to find a solution for you.

When banks are not an option or a loan is required quickly, Stratton Equities is your source of funding.

There are many distinct reasons why real estate investors opt to use hard money. The primary justification is the hard money lender's capacity to fund the loan fast. Hard money loans from Stratton Equities can typically be funded within a week. Contrast that with the 30 to 45 days needed to fund a bank loan. Hard money loan applications often take one or two days to process, though in exceptional circumstances a loan may be authorized on the same day.

An important benefit for a real estate investor is having access to capital at a rate that is far faster than a bank loan. A speedy closing with a Stratton Equities hard money loan will catch a seller's eye and distinguish the real estate investor's offer from the other purchasers offering slow conventional financing, particularly when they are looking to buy a property with several competing bids.

Stratton’s Loan Officers are ready and waiting for your call at 800-926-6613!

Hard Money Loans For Dummies


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