Hard money loans in San Antonio Texas are a great way to finance a short term real estate deal. In fact, hard money loans — also known as asset-backed loans or bridge loans — are probably the best way to fund just about any real estate investment project. This is due to the fact that hard money loans offer key advantages over traditional commercial real estate loans. So, read on to learn more about hard money loans in San Antonio Texas, and beyond.
Hard money loans in San Antonio Texas are a smart avenue for securing financing for a real estate investment, particularly for projects like fix and flip. (These can also be used for multifamily, commercial buildings, and more.) And, these are the perfect way to fund a deal without having to commit personal capital.
What are Hard Money Loans?
Hard money loans serve as an alternative to traditional commercial loans. Instead of going through all the bureaucracy and red tape, these loans do not have as strict requirements. Instead of being offered by traditional banks, hard money or asset-based loans, are obtained through specialty lenders or private investment groups.
How Do Hard Money Loans Work?
Rather than going through a traditional lender, the borrower obtains financing through a specialty source or through a group of private investors. Interest rates are generally competitive and terms range from as little as six months up to a year, even one and a half to two years, and as much as five years. The real estate serves as collateral and the loan is paid off upon completion of the project.