Traditional loans aren’t always the best fit for every Greenville investor. That’s where hard money lenders come into play. These lenders offer a unique alternative for those who need quick access to funding, especially in competitive markets where timing is everything. Whether you’re looking to flip a house on North Main or purchase an investment property near the West End, a hard money loan could be the key to making it happen. This guide will walk you through what hard money loans are, how they work in Greenville, and whether they’re the right option for your real estate needs. Hard money lenders offer short-term loans primarily for house flippers and investors purchasing rental properties. Unlike traditional banks, they focus on the property’s after-repair value (ARV)—the estimated value of a property after renovations. This helps them determine the loan amount, typically offering up to 70-75% of the ARV. Interest rates for hard money loans are higher than standard loans, reflecting the increased risk and short loan duration. Borrowers also pay points, or upfront fees, which can add to the cost. If a borrower fails to repay the loan, the lender can take ownership of the property, using it to recover their investment. This type of financing is ideal for those needing quick funds for investments, especially when speed is a factor and conventional loans aren’t an option. In Greenville, hard money loans offer a different approach to real estate financing compared to traditional methods. Understanding how these loans work can help you decide if they’re the right fit for your investment needs.What is a hard money lender?
How does a hard money loan work?
