Hard Money 101
A hard money loan is simply a short-term loan secured by real estate. A high interest, low underwriting loan is for those in crisis and for those that cannot get conventional financing. Stratton Equities funds these loans as opposed to conventional lenders such as banks or credit unions. The terms are usually around 12 months, but the loan term can be extended to longer terms of 2-5 years. The loan requires monthly payments - interest only.
The amount Stratton Equities' Loan Officers are able to lend to the borrower is primarily based on the value of the subject property. The property may be one the borrower already owns and wishes to use as collateral or it may be the property the borrower is acquiring.
Here at Stratton Equities we are primarily concerned with the property’s value rather than the borrower’s credit. Borrowers who cannot get conventional financing due to a recent foreclosure or short sale can still obtain a hard money loan if they have sufficient equity in the property that is being used as collateral. When the banks say “No”, Stratton can still say “Yes”.
Stratton Equities is your source of financing when banks are not an option or the loan is needed in a short period of time.
Real estate investors choose to use hard money for many different reasons. The main reason is the ability of the hard money lender to fund the loan quickly. In most situations, Stratton Equities hard money loans can be funded within a week. Compare that to the 30 – 45 days it takes to get a bank loan funded. The application process for a hard money loan generally takes a day or two and in some cases, a loan can be approved the same day.
The ability to obtain funding at a much faster rate than a bank loan is a significant advantage for a real estate investor. Especially when the real estate investor is trying to acquire a property with many competing bids, a quick close with a Stratton Equities hard money loan will get a seller’s attention and set their offer apart from the rest of the buyers offering slow conventional financing.
Stratton’s Loan Officers are ready and waiting for your call at 800-926-6613!
