Hard money lending is a quite familiar term in real estate industry, so if you are about to enter this field, you will probably questioning on what is hard money lending and the usage. Well, to make it simple, hard money lenders are the type of lenders who will provide the loan that you need when other lenders think that you are not eligible for the loan. They can also be considered as lenders who will approve your loan to purchase real estate which located in areas which considered as unable to fulfil the lending standard of most lenders.
Even though the amount of interest rates that they are charging for loan is quite high, there are actually a lot of advantages you can get from hard money lenders. In case you can no longer afford the property that you have purchased and bankruptcy is threatening your life, hard money lenders can help you with private loan with deflated rate so you can pay more of the principal back on property. So when it comes about the question of what is hard money lending, the answer can be quite varied according to the type of solution it offers towards your specific problem. Hard money lenders can even help you to own the property that you previously can’t afford in quicker way so you can avoid the risk of bankruptcy with your ability to pay off the property in regular basis. Meanwhile, your credit rating will be improved significantly as additional bonus or advantage.
Purchasing property can also be easier with the help of hard money lender even though the location is not really interesting for other lenders. Hard money lenders will also be valuable for people with bad credit who cannot obtain the loan from the regular lenders as long as they are able to fulfil the simple requirements. So have you understood the answer of your question on what is hard money lending with those explanations?