Their Utility and Difference form Traditional Loans
Here at HML Solutions, we offer hard money loans for a variety of purposes. Hard money loans are those loans that are usually secured by some form of real estate, which is then used as collateral against the money being lent.
Our hard money loans are typically used for the financing of real estate transactions. In addition to being collateralized by real estate, hard money loans differ from traditional loans in that they are generally paid off quickly, within a few years or less, and they can be obtained even if the applicant does not have stellar credit because the funding is indeed secured by real property.
Varieties of Hard Money Loans
We at HML Solutions are in the business of providing the three major types of hard money loans: Bridge loans, Transactional loans, and Rental loans.
We offer Bridge loans for people in the transition period between two major transactions. This type of loan is intended to “bridge” the financing gap that often arises when one property is bought before an already-owned one is sold. They tend to be popular because they often come with quick approval. Advantages of obtaining a bridge loan include easy qualification as well as quick and easy repayment provisions.
We are particularly interested in offering these loans to those in the fix-and-flip business. Property flipping is a big business in many parts of the country now, and our bridge loans can help ensure the smooth transition from one project to the next so that our customer’s business stays on track.
We can provide transactional loans to qualified individuals. These are designed to offer short-term infusions of capital to real estate investors. They are generally obtained much more quickly than traditional loans, which often involve a long and drawn-out process.
They are most advantageous for investors who have found buyers who are willing to pay a lot higher for a property than its real value. Here is a typical transaction: An investor purchases a property using a transactional loan then sells the real estate to the buyer. Immediately thereafter, the investor would then pay the loan off using the proceeds from the sale and profit the difference.
A key advantage of transactional loans is that the loan is made based on the value of the property in the potential deal. Additionally, the investor does not have to come up with the cost of purchase from his or her own funds.
At HML Solutions, we also offer rental loans intended for people who are looking to purchase rental properties. Owning rental property can be quite lucrative, although many investors need an up-front infusion of capital to get their first property or two. In general, these are highly versatile loans tailored to the specific situation of each person.
There are a number of benefits in obtaining a rental loan, including quick approval, high flexibility, and the ability to earn rental profits in short order. Obtaining a rental loan can be an important step to realizing long-term rental income.