Florida Residential hard money loans are those offered by private lenders like hedge funds, wealthy private individuals and small community based investment companies. These hard money loans are based on the value of a collateralized asset pledge by the borrower, compared to conventional loans that use borrower credit history, tax returns and income statements as their criteria.
Florida Residential hard money loans are usually acquired from acquisitions, refinancing, foreclosures and bankrupt individuals looking to rebuild their credit history.
The interest rates on these loans are high, but it is quite cheaper & worthwhile considering the stern terms and regulations, time frames and the closing costs of a conventional loan.
Usually Florida hard money lenders offer interest rates 6%-8% higher than conventional bank loans. People come under the impression that these loans are hard to payback however these hard cash loans are beneficial for borrowers who cannot find additional lending for renovations of residential property before selling or putting it up for rent.
Florida Hard money lenders consider income producing properties such as apartments, retail properties, industrial, office building, hotel, motels, medical facilities and restaurants.
There are though other non-income properties that they consider investing into like land acquisitions, development projects, construction sites, foreclosures and bankrupt properties.
Most private investors look for a safe and guaranteed investment, with an above average return they could get from banks. Florida Residential hard money loans are usually secured by 30-50 % equity from the borrower.