Hard Money Lenders Fort Lauderdale: Quick Funding Guide
2 min read
Thinking about financing your next real estate venture in Fort Lauderdale? You might have heard about a hard money loan as a quick funding option. Whether you’re looking to flip a property or invest in rental homes, understanding how hard money lenders work can save you time and stress.
Hard money loans offer an alternative to traditional financing, focusing more on property value than credit scores. These loans can be particularly appealing in a competitive market like Fort Lauderdale, where speed and flexibility are essential.
Here’s everything you need to know about hard money lenders and how they can help you secure the funds you need.
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 provides short-term loans primarily used for real estate investments. Their clients typically include house flippers, rental property investors, and developers who need quick financing. Instead of relying on a borrower’s credit score, hard money lenders determine loan amounts based on the after-repair value (ARV) of the property.
The ARV is the estimated value of a property after renovations. Hard money loans come with higher interest rates and fees compared to traditional loans, usually ranging from 8% to 15%. If a borrower fails to repay the loan, the lender can foreclose on the property, making these loans a high-risk, high-reward option for real estate investors.
How does a hard money loan work?
If you’re a real estate investor looking for a financing option that provides speed and flexibility, connecting with hard money lenders in Fort Lauderdale could be beneficial. Here’s a quick rundown of how hard money loans work:
