A hard money loan is a short-term loan commonly used for commercial or investment properties that don't come from traditional lenders but rather from people or private companies. Hard money loans are unique because the lender accepts the property or asset as collateral if the loan cannot be paid off.
Because hard money loans rely on collateral rather than credit or financial position, the timeframe at which a borrower can receive a loan is much quicker. Financing for this type of loan is based on the assets Loan To Value ratio, which is the loan divided by the property's value.
The standard hard money loan rate is 65-75% of that average. Compared to other types of loans, hard money loans include higher interest rates, are riskier, and have a shorter duration. Shorter duration references the rate at which the loan needs to be repaid since they are typically short-term loans that last 12-24 months.
Kings of Capital provides real estate investors with an alternative financing option through hard money loans, which offer faster closing times than traditional loans and have a short-term duration of 12-24 months.
• Blanket Loan Options Available
• Single-Family, Condos, Townhomes, Multi-Family, Commercial
• Mixed Use, Office, Retail, Industrial, Warehouse
• Rates Starting at 7.25%
• $100K – $5M
• Up to 75% LTV
• Fixed rates/Adjustable
• 9-24 Month Terms
• Interest-Only Payments
• Purchase, Refinance, or Cash Out
• Foreign Nationals Eligible
• No Prepayment Penalty Option Available