Looking to fund your next real estate project in San Antonio with a hard money loan? Whether you’re scoping out a charming fixer-upper in Woodlawn or planning to purchase a commercial property downtown, hard money lenders in San Antonio offer the speed and flexibility you need. Hard money loans serve as an alternative to traditional financing, and are especially useful for those with tight project timelines, limited capital, or credit challenges. For homeowners not involved in real estate investing but needing to bridge the gap between buying and selling, we’ll explore some practical alternatives to leverage your home’s equity. This guide will walk you through the essentials of hard money lending in San Antonio, helping you determine if this financing option aligns with your real estate investment or home-buying goals. A hard money lender is a private individual or company that offers short-term loans secured by real estate. Unlike traditional lenders, who focus heavily on the borrower’s creditworthiness and income, hard money lenders in San Antonio prioritize the value of the property being used as collateral. These lenders cater to real estate investors, including house flippers and those purchasing rental properties, who need quick access to funds and flexible terms. Hard money lenders use after-repair value (ARV) — the estimated value of a property after all renovations and repairs are completed — to determine the loan amount they are willing to offer. They typically lend a percentage of the ARV to ensure the investment’s profitability and security. Hard money loans generally have higher interest rates, ranging from 8% to 15% or more, and shorter repayment periods, usually between 6 to 24 months. Additional costs can include origination fees, closing costs, and points. If a borrower fails to repay a hard money loan, the lender can seize the asset to recover their investment. If you’re a real estate investor in San Antonio seeking a fast and flexible financing solution, hard money loans might be the perfect fit. Here’s a quick overview of how hard money loans work:What is a hard money lender?
How does a hard money loan work?
