Hard money lender business plan

Us Hard Money Lender Requirements:

Hard money lender business plan

It is called hard money because it is usually secured by a real asset, such as property. Hard money loans are often easier to get than bank loans, but they come at a big cost, and a big risk, to the borrower.

Many startup businesses turn to hard money loans when they cannot get a bank loan, but these loans can be very difficult to repay. Hard Money Lenders A hard money lender is essentially a person or company that has money to lend.

Using Your Money

Some hard money lenders are individuals with a large amount of cash on hand, who lend money to a small number of people as a business. Other hard money lenders are large companies that lend money to hundreds or thousands of individuals and small businesses.

Many hard money lenders are actually merchant cash advance providers, which offer cash to businesses in exchange for a share of future earnings.

How it Works Some hard money lenders loan money to startup businesses and secure the loan with the business-owners' property.

This type of hard money lender will not loan money unless the borrower has an asset, such as a home, that can be repossessed in the event of nonpayment.

About Hard Money Lenders for Starting a Business | timberdesignmag.com

However, most hard money lenders are merchant cash advance lenders, who will lend startup, or existing, businesses a lump sum in exchange for a share of future earnings. These lenders usually automatically deduct a percentage of the business' credit card transactions.

What Are the Risks? If the lender is a merchant cash advance company, which collects a share of future profits, then the loan is not regulated by laws that limit interest rates.

Private Money Lending Basics

In this case, the interest rates on the loans are usually very high — they can range from 30 percent to as high as percent APR. This type of hard money lender will usually take between 30 percent and 45 percent of all credit card sales until the loan is paid off.

This means that your income will be considerably reduced until the loan is paid off. If business is slow, it can take many years to pay off the loan and you will be left with little to live on in the meanwhile.

Failure to repay the loan can result in a court judgment against you for breach of contract. What Are the Advantages?

The only real advantage of a hard money loan is that hard money lenders will work with businesses that have little collateral or income — such as startups.

The loans are usually easy to apply for and are given very quickly — usually within just a few days of applying. This is a fast and easy way to gain access to capital. Another advantage is that many merchant cash advance providers do not require you to provide them with a sales history before making the loan.

This can be very helpful for businesses just starting out. Take Precautions Because borrowing from a hard money lender is high risk for any startup business, you need to make sure that you thoroughly check out any company or individual that you are considering borrowing from. Try to talk with other borrowers to find out their experiences.

You can also check with your state or local Better Business Bureau and find out if there have been any complaints against the lender.

Starting a Hard Money Lending Business

References 2 Foreclosure University: Accordingly, she specializes in writing about science and travel and has written for publications as diverse as the "Snowmass Sun" and "Caterer Middle East.The Hard Money Lender business plan template is a comprehensive document that you can use for raising capital from a bank or an investor.

This document has fully automated 3 year financials, complete industry research, and a fully automated table of contents.

hard money lender business plan

This blog was written by Bob Amter, President of Montegra Capital Resources, LTD., a Colorado hard money lender. [google_authorship] has been in the private capital lending business for .

It is a wonderful business if done properly and you have the right support team (attorney, compliance officer, staff, etc.). Underwriting is not rocket science but there is a right and wrong way to properly run and operate a hard money/private lending business.

Hard Money Lending doesn't have to be "Hard" Intrepid Private Capital Group offers FAST access to hard money lenders and is dedicated to providing our clients with a personalized service that meets and exceeds their expectations for a pain-free funding timberdesignmag.comon: Prince Frederick, , Maryland.

All hard money lenders will do loans in 1 st position, while fewer will do 2 nd position due to the increased risk for the lender. What Types of Deals Should Hard Money Loans Be Used For?

hard money lender business plan

Hard money loans are not appropriate for all deals. Hard Money Lender Business Plan. The Hard Money Lender business plan template is a comprehensive document that you can use for raising capital from a bank or an investor.

This document has fully automated 3 year financials, complete industry research, and a fully automated table of contents.

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