Financing
You have found the perfect property to invest in. So how are you going to
finance your purchase?
Realty Wholesalers will connect you with a hard money loan so you may purchase your
property, regardless of the condition.
A hard money loan is a specific type of asset-based loan financing
collateralized against the quick-sale value of the property for which the loan is
made. This type of loan is similar to a Bridge Loan where the property is purchased
as an investment and temporary financing is used for the purchase with the intent
to make improvements and rent the property. After such improvements are made, the
property is re-appraised and refinanced through conventional financing, with better
terms, and the property owner may pull out the original investment, including renovation
costs. These loans are to be in first position only.
Terms: (vary according to property location and borrower’s credit)
- Typically the loan-to-value or LTV ratio is 65% of the purchase price.
- Interest rates range between 14-17%
- Points (origination or pre-payment penalty) range 3-5 points
- Loan term of one year, interest only, Balloon Mortgage
Hard Money Loan Request Application