Hard Money Lenders Kansas City: Fast Funding and Alternative Financing Options
2 min read
Do you need quick funding for a real estate deal in Kansas City? Whether your goal is to flip a historic home in Westport or invest in rental units in the bustling Crossroads Arts District, hard money loans can provide the necessary capital in no time. Unlike traditional loans, these loans are based on the property’s value after repairs, offering flexibility for various types of investors.
This guide will walk you through the essentials of hard money loans in Kansas City, including what they are, how they work, and who can benefit from them.
We’ll also highlight alternative financing options like HomeLight’s Buy Before You Sell program, ensuring you have all the information needed to make the best financial decisions for your real estate projects.
Editor’s note: This post is for educational purposes and is not intended to be construed as financial advice. HomeLight always encourages you to consult your own advisor.
What is a hard money lender?
A hard money lender is a private lender or company providing short-term loans secured by real estate. Unlike conventional lenders that assess credit scores, hard money lenders prioritize the property’s worth. These loans are ideal for house flippers and investors in rental properties seeking quick access to capital and flexible terms.
Loan amounts are based on the after-repair value (ARV), which is the estimated value after repairs. Lenders typically lend a portion of the ARV, ensuring the property’s profitability. Interest rates range from 8% to 15%, with terms between 6 to 24 months. Borrowers also face origination fees, closing costs, and points upfront. Failure to repay can lead to the lender seizing the property to recover their investment.
How does a hard money loan work?
Kansas City real estate investors who need quick financing might find hard money loans to be a good option. Here’s a detailed look at how these loans work:
