Private or hard money lending is a great way for flippers and fixers who are dealing with short timelines or want to remain competitive with buyers offering cash. However, a private lender can also work for long term investments such as rental property rehabilitation prior to refinancing into a permanent mortgage. Private money loans can also work for long-term investors unable to qualify for conventional mortgages or home-style renovation mortgages.
Typically, interest rates on hard money loans are assessed as interest only payments. This usually means that a borrower must pay interest at the end of every month during the entirety of the loan and then make the entire repayment when the loan ends. Unlike conventional mortgages, these monthly payments are not amortized like conventional mortgages.
While private money loan interest rates can indeed be higher compared to conventional mortgages, monthly payments usually aren’t as much. This is what makes a private money loan a highly reliable option for the fix and flippers, who wish to reduce the holding cost while they’re preparing a property for sale.
This update is by Miami hard money lender Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money loans Miami, please call 954-816-0388 or fill out our application