Detroit Hard Money Lenders: Speedy Real Estate Loans
Looking to kickstart your next real estate venture in the Motor City? A hard money loan might be just what you need. From flipping houses in Rosedale Park to acquiring rental properties in Greektown, Detroit’s hard money lenders can provide the quick funding and flexible terms you need. These loans are especially useful for short-term projects and those with limited initial funds or credit issues.
Even if you’re not into real estate investments but need to bridge the gap between buying and selling a home, we’ll discuss alternative options for leveraging your home’s equity. This article will dig into the essentials of hard money lending in Detroit, guiding you to make informed decisions that align with your real estate objectives.
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 individual or company that provides short-term loans secured by real estate. Unlike traditional banks, these lenders emphasize the property’s value rather than the borrower’s credit score. Their clients are often house flippers and investors buying rental properties who need quick, flexible financing.
Loan amounts are based on the after-repair value (ARV) of the property, which is its estimated value post-renovation. Typically, lenders provide a percentage of the ARV to ensure profitability and security.
Interest rates for hard money loans range from 8% to 15%, with terms usually between 6 to 24 months. Additional costs may include origination fees, closing costs, and points. Failure to repay can result in the lender taking possession of the property to recoup their investment.
How does a hard money loan work?
For those in Detroit seeking flexible and fast financing for real estate projects, hard money loans can be a viable solution. Here’s how these loans typically work:
