One of the selling points hard money lenders like to promote is speed. A typical hard money loan can be approved and funded in less time than it takes to get bank funding. How much less? That depends on a number of factors. Every money loan is different. But the one thing you can take to the bank, so to speak, is that hard money lenders work quickly.
Actium Partners is a Salt Lake City hard money firm that has been known to approve and fund loans in less than 24 hours. That is certainly not the norm but working that quickly is possible when circumstances warrant. It is all based on how hard money loans are structured.
The place to start in explaining all of this is to say that hard money loans are loans made against hard assets. If you were to apply with Actium for a loan to purchase a strip mall, the firm would not be all that interested in your income, credit history, and debt load. They would be interested in the value of that strip mall.
Loan approval would be based on how much the property is worth versus … Read More