Hard Money Lenders Rhode Island: Flexible Real Estate Loans
Are you a real estate investor in Rhode Island looking for a fast and flexible financing option? Whether you’re flipping houses in Providence or buying rental properties along the coast, a hard money loan could be the right move for you.
Hard money loans can carry higher interest rates than traditional loans, but they come with fewer restrictions and generally quicker approval times.
This type of loan offers quick access to funds, even if your credit history isn’t perfect. In this guide, we’ll break down what hard money loans are, how they work, and how to decide if they’re right for you.
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 offers short-term financing, typically for real estate investments. Their clients are often house flippers or those buying rental properties.
Unlike traditional lenders, hard money lenders focus more on the property’s after-repair value (ARV), which is the estimated worth after renovations are complete.
Interest rates on hard money loans are typically higher than those on conventional loans. They can range anywhere from 8% to 15%, depending on the lender and the perceived risk of the project.
If a borrower defaults, the lender may foreclose on the property, as it is collateral for the loan. These loans provide investors with quick cash but at the cost of steeper fees and interest.
How does a hard money loan work?
Hard money loans in Rhode Island work differently from traditional loans in several ways. These loans offer a faster and more flexible option for real estate investors needing immediate funding.
