Hard Money Loans
Private Hard Money Loans and Home Real Estate Investments
Traditional commercial hard money loans are too high a risk with the default rate that exceeds that offered by private hard money loans. Going with a bank or credit union is the investor’s call, but private lenders offer an advantage that will signify a difference in profit gained. Property owners that have to sell property due to bankruptcy and foreclosure proceedings give real estate investors a blank slate to work from. The advantage has to be gained somewhere. Gaining the advantage from a private hard money loan in South Carolina real estate is simply a better call for an investor.
South Carolina and county areas such as Charlton County, Myrtle Beach and Greenville have many properties where mortgages have been defaulted on as a result of the economic decline. For investors with the ability and resources to invest, this means a buy-up opportunity that can’t be missed. Private hard money loans are easily attained by qualified investors, especially experienced investors. When the accounting is complete and the numbers come out favorable for private investors with experience, even they can attain support from a private lender. Private lending is preferential to bank loans and other commercial loans for many reasons. The bottom line is the percentage. Private lenders offer not only better services but also better rates.
With a high-default rate on commercial hard money loan programs, private loans make a significant difference for real estate investors. In the South Carolina area, 65% LTV is readily offered to qualified investors and, on occasion, given the appropriate numbers, a higher LTV can be offered. For investors this means an opportunity to purchase properties without any out-of-pocket expense. Home real estate is a burgeoning area for investors, particularly in the SC region, which has attractive real estate. This real estate will eventually be purchased by buyers for a high price, a win-win for everyone.
Hard money loans from private lenders offer customized services for the investor. This includes attorneys with experience in the area, licensed brokers and title companies. Private lenders offer this as leverage for investors where public lenders do not. Hard money loans in the South Carolina area are not only a tactical advantage for investors, but also offer business relationships that you continue into the future. It is called “hard money” for reason. There is no out-of pocket expense for the investor and the capitol is essentially like hard cash. This advantage is offered for quick-turnaround properties and investors with the experience. Private hard money loans are short-term. The investor will ideally be planning on a nine-month to two year loan term and will benefit from a private lender more than they will benefit from commercial hard money loan programs.