Are you a real estate investor in North Carolina seeking quick funding for your next project? Whether you’re flipping a Craftsman bungalow in Durham or securing a commercial property in Greensboro, hard money loans can provide the financial boost you need. These loans cater to investors who require fast funding and more flexible terms than traditional financing options. In this article, we’ll explore the ins and outs of hard money lending in NC. You’ll learn about the benefits and potential drawbacks of these loans, as well as alternative financing methods to consider. We’ll also highlight HomeLight’s Buy Before You Sell program, which offers an innovative solution for homeowners wanting to tap into their equity without the stress of traditional selling timelines. Hard money lenders are private investors or companies offering short-term, asset-based loans, usually secured by real estate. Unlike traditional lenders who focus heavily on credit history, hard money lenders emphasize the value of the property being used as collateral. Their clients often include house flippers and real estate investors purchasing rental properties. Loan amounts are based on the after-repair value (ARV) of the property, or the estimated worth post-renovation. Hard money lenders typically offer a percentage of this value to protect their investment. These loans come with higher interest rates, usually between 8% and 15%, and various fees, such as origination and closing costs. If a borrower defaults, the lender can take possession of the property to recoup their funds. For real estate investors in North Carolina needing quick and flexible financing, hard money loans can be a great option. Here’s an overview of how they work:What is a hard money lender?
How does a hard money loan work?
