Hard money lenders offer a fast, flexible financing option for Raleigh investors who need quick access to capital. Whether you’re planning to flip a home in Five Points or invest in a rental property near North Hills, knowing how hard money loans work can help you make an informed decision and secure the funds you need. In this guide, we’ll cover everything from what a hard money lender is to how these loans work, specifically in Raleigh. We’ll also discuss the costs involved, alternative financing options, and highlight some of the top hard money lenders in the area. A hard money lender provides short-term, asset-based loans primarily used for real estate investments. These lenders typically work with clients such as house flippers, real estate developers, and rental property investors. Unlike traditional lenders, hard money lenders base their loan amounts on the property’s after-repair value (ARV), which is the estimated value of the property once renovations are complete. Interest rates for hard money loans tend to be higher, ranging from 8% to 15%, reflecting the increased risk for lenders. Borrowers may also face origination fees, closing costs, and points. If a borrower fails to repay the loan, the lender can foreclose on the property, selling it to recoup the investment. This type of loan is ideal for those who need quick, flexible financing and have a solid plan for property improvement and resale. Hard money loans typically have shorter repayment periods, usually 6 to 24 months. Additional costs can include origination fees, closing costs, and points, which is a percentage of the loan amount paid upfront. If you’re a real estate investor looking for a financing option that provides speed and flexibility, connecting with hard money lenders in Raleigh could be beneficial. Here’s a quick rundown of how hard money loans work:What is a hard money lender?
How does a hard money loan work?
