Talk:Hard money loan

Original References

I won't add the links myself, but this article's content was created using references from this website - www.avatarfinancial.com - which I helped build (my staff and myself worked on the Wikipedia article, though it's been edited somewhat since). I know Wikipedia doesn't like to link out to commercial sites, but I do think that a reference to the domain, from which much of the information was garnered, would be appropriate. --Randfish 19:03, 28 February 2007 (UTC)

Untitled

Removed links to individual site "Avatar". Removed "Weird Loans" link which did not lead to information within the accepted industry standard of two clicks.

This article was created based on the information available here - [1] and on other pages of that site. It was in the original references and is the source material, why was it removed?

Hard Money Loans are also known as Bridge loans, Asset Based loans, and Equity based loans. They are used as short term loans to purchase real estate or refi real estate when the borrower needs the deal done quickly and the plan is to refi or sell the property in a short period of time. They are used when a person's credit is not up to par, and the borrower plans to fix his/her credit in a year or two.

I took out the advertizement phone number. 68.4.59.67 17:08, 5 May 2007 (UTC) John Doyle

Needs clean-up

I'm going to add some clean-up, citation, and/or copyedit citation tags. This article has some use but it's very messy, full of typos, unsourced, and has some dubious-sounding information. One thing I see right off the bat is that the introduction distinguishes bridge loans from hard money loans on account of hard money loans being any asset based loan at a high interest rate (I don't think that's true, I think it also implies private non-bank financing), whereas a bridge loan refers to a commercial or investment property (what's the difference?) that may be distressed (definitely not true; bridge loans are used for many other purposes inside and outside the real estate industry). The very next section, "loan structure", says hard money loans are real estate loans, contradicting the above. Midway down the page the concept of "commercial hard money" is introduced without explanation of what it is. What a mess! Wikidemo 04:15, 13 August 2007 (UTC)

Hard money loans vs. bridge loans

If there is a clear distinction between these two terms, I am not aware of it. The two terms have similar meaning but in my experience one or the other is used more frequently depending on the context.

The term "hard money loan" usually refers to a very small property such as a home that may be occupied by the borrower. Hard money loans are often loans originated by a local, informal investor such as a wealthy individual who may already own property in the area and may be happy to foreclose on the property in case of a default by the borrower.

The term "bridge loan" is used more frequently when the property is much larger, such as a shopping center or a large apartment project. Also, bridge loans are frequently those originated by an institution such as a mortgage fund or a bank rather than a single individual lender. I would expect origination fees on something described as a bridge loan to fall in the 1-3% range rather than in the 4%+ range that is more common when the term "hard money" is used. Finally, bridge lenders frequently prefer to avoid a default under which they must foreclose, while hard money lenders might more frequently include "loan-to-own" lenders who are happy to foreclose on a borrower because they see foreclosure as a path to greater profits.

If others agree with this distincition, then I will add it to the article.

--Jbrzeski (talk) 04:21, 5 November 2010 (UTC)

"Renumeration" or "Remuneration"?

A recent edit changed the word remuneration (which means payment) in the Loan Structure section to renumeration, which isn't actually a word (apparently it is a word, simply meaning re-counting {IrishCowboy (talk) 17:20, 26 November 2014 (UTC)}). They left no edit notes other than the default section name. It's too late to revert that change, as someone has since done some link work. Loans and their jargon are not my specialty, so I thought I'd ask here before changing the word back to remuneration. Does anyone have a problem with my changing it back? IrishCowboy (talk) 21:34, 3 November 2014 (UTC)

Hearing no objection, I've gone ahead and made this change myself. I've included a link to the wiki article on remuneration so it doesn't get changed back in the future. IrishCowboy (talk) 17:12, 26 November 2014 (UTC)

Private Mortgages and Hard Money Loans

Private mortgages and hard money loans are terms that are synonymous for mortgages that are arranged with private investor funds. Private mortgages are also referred to as "private money" loans. Private money "hard money" loans are mortgages are similar to bank or traditional mortgages, in that they can be used to purchase real estate or refinance a mortgage loan, except private money loans are primarily equity-based. The main factor for a private lender or private investor to arrange a private money is loan is the underlying property that is securing (protecting) the loan. Private money lenders are not as concerned about credit or income as most banks and traditional mortgages lenders are. Private money lenders can typically complete a private "hard money" loan in weeks and sometimes in days, where a bank or traditional mortgage lender will require about 30 days to complete a loan from start to finish. Private money lenders are also not as critical of the condition of the property (real estate) that the mortgage is secured with. Interest rates for private money loans are higher than traditional mortgages (6 to 12%) and the loan origination fees are also higher. Private money "hard money" loans fill a demand from borrowers with challenged credit, time constrictions and income documentation challenges. Banks cannot serve all borrowers and property owners. Private mortgage lenders are a necessary source of capital and mortgages for many real estate investors, self-employed and thousands who don't meet the rigorous lending guidelines of banks or traditional mortgage lenders. — Preceding unsigned comment added by JaywGreen (talk • contribs) 23:26, 30 September 2019 (UTC)