Residential Hard Money Loans Florida
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
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Advantages of Florida Hard Money Loans
Florida Residential hard money lenders never consider impractical aspects like credit scores as a factor when assessing borrowers. If hard cash lenders do require a credit report it’s most likely they want confirmation that the borrower is not bankrupt, doesn’t have open judgments against them or in foreclosure. These factors may not even budge the lenders decision o underwrite the loan, but it may force them to raise the interest rate and keep close monitoring.

When buying a property at a discount of availing a short sale, borrowers can finance 100% of the cost using hard money loans. For instance buying a $100,000 property for $50,000, the borrower can procure the entire funding from a Florida hard money lender making a loan at a 50% loan-to-value. This is something a conventional lender will never do.

Usually private lenders check the future income generating ability of a property, they are however more concerned about the current value of the property. The value of the property at loan origination is a very important number for the investor since this is the value they will consider for collateral if the loan is not serviced and things go the other way. Private lenders rarely approve vacant properties with no rental income as prospect investments; however these types of properties are favorite targets for private lenders.

The speed at which private hard cash loans are closed is maybe their best advantage. Speed of closing the loan is a huge advantage for many real estate investors, especially those buying properties in auctions, short sales and discounts. When carried out properly a hard cash loan process can be closed in 24 hours, usually it takes between 14 and 30 working days. Even the longest Florida hard money lender timelines are less than a basic conventional loan.

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