Hard Money Lenders Wisconsin: Flexible Loan Options
Are you hoping to finance your next real estate acquisition in Wisconsin with a hard money loan? Hoping to flip a historic home in Milwaukee or invest in a rental property near Madison’s vibrant downtown?
Hard money lenders in Wisconsin can provide the flexibility and speed to get it done quickly. Hard money loans are a useful financing solution to conventional loans, particularly beneficial for those with short project timelines, limited initial capital, or credit issues.
Even if you’re not a real estate investor but need to bridge the timing gap between buying and selling a home, we’ll share some alternatives to help you leverage your home’s equity. This article will guide you through the basics of hard money lending in Wisconsin, helping you decide if this financial tool aligns with your real estate investment or home-buying goals.
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 loans secured by real estate.
Key Features
Collateral Focus: Prioritizes the property’s value over the borrower’s creditworthiness.
Client Base: Popular among real estate investors, including house flippers and rental property buyers.
Loan Determination: Based on After-Repair Value (ARV) — the estimated property value after renovations. Lenders typically offer a percentage of the ARV.
Costs and Terms
Interest Rates: Typically range from 8% to 15% or more.
Repayment Period: Usually between 6 to 24 months.
Additional Costs: Include origination fees, closing costs, and points (a percentage of the loan amount paid upfront).
Risks
Asset Seizure: Failure to repay can result in the lender seizing the property to recover its investment.
How does a hard money loan work?
If you’re a real estate investor needing a financing option that provides speed and flexibility, connecting with hard money lenders in Wisconsin could be beneficial. Here’s a quick rundown of how hard money loans work:
