Question 1

Who uses hard money loans?

Accepted Answer

New real estate investors who can’t demonstrate enough income or cash reserves for a bank to qualify them  Investors with poor credit, undocumented income or a short work history  Experienced investors with more than 4 mortgages in their name  Investors buying properties that need significant repairs  Buyers who need renovation funding, not just purchase funds  Investors who don’t have the cash required to close with a conventional loan  Real estate investors who are highly leveraged elsewhere  Buyers of properties that won’t appraise as-is for an acceptable value  Buyers dealing with distressed sales that must close in days, not weeks  Buyers of rental properties that are under-rented, in need of repair or otherwise problematic  Property owners with high equity who need quick access to cash for any reason

Question 2

Why should I use a hard money lender?

Accepted Answer

Hard money loans are most advantageous because of their speed and simplicity. To qualify for a loan, we base the approval on the value of the underlying asset. We do not require credit checks, personal income, tax returns, or rent rolls. This allows you to capitalize on time sensitive opportunities or properties that a traditional bank will not fund because they are distressed.  In short, hard money loans help you leverage opportunity.

Question 3

Who benefits from using hard money loans?

Accepted Answer

Real estate investors who need financing quickly or are acquiring a property that will not qualify for a traditional bank loan will benefit from contacting a hard money lender.

Question 4

People told me hard money lenders have high rates, is this true?

Accepted Answer

Rates on hard money loans are higher than with traditional banks, but they are funded quickly and do not require months long financial investigations. Experienced investors know that the value in leveraging hard money loans is far greater than the interest costs they incur. Savvy investors how to use hard money as a tool so they can remain liquid and reduce their risk.

Question 5

Can I use a hard money lender to buy and repair a property?

Accepted Answer

Our fix and flip loans are structured to enable investors to easily acquire, rehab, and sell properties at a profit. We will fund up to 100% of rehab costs.

Question 6

How fast can I close a hard money loan?

Accepted Answer

When an abstract of title is required, we can close within 5 days of our attorney receiving an updated abstract. In areas where chain of title is customarily sufficient to produce a title commitment, we can close within 48 hrs of receipt of said commitment.

Here are the basics of hard money loans from Webster Capital. Contact us if you have or additional questions or apply now!