Dreaming of revitalizing a historic property in Old City or flipping a one-bedroom condo in Chinatown? Hard money lenders in Philadelphia provide an effective financing option for your next real estate venture. With a focus on property value rather than credit scores, hard money loans offer a streamlined path to funding, perfect for those needing quick turnarounds. In this article, we’ll explore the ins and outs of hard money lending in Philadelphia, from understanding the basics to evaluating costs and alternatives. Whether you’re a seasoned investor or a homeowner seeking fast cash, this guide will help you navigate the world of hard money loans to achieve your real estate goals. A hard money lender provides short-term loans secured by real estate, with a primary focus on the property’s value rather than the borrower’s creditworthiness. These lenders typically work with real estate investors, such as house flippers and buyers of rental properties. Hard money lenders determine the loan amount using the after-repair value (ARV), which is the estimated worth of the property after renovations. They lend a percentage of this ARV to safeguard their investment. The loans come with higher interest rates, typically between 8% to 15%, and shorter terms, usually from 6 to 24 months. Additional costs include origination fees, closing costs, and points. If a borrower fails to repay, the lender can take possession of the property to recover their funds. Hard money loans offer a fast and flexible financing route for real estate investments in Philadelphia. Here’s how they typically work:What is a hard money lender?
How does a hard money loan work?
