Hard money (private money) fills a niche in mortgage lending and provides alternate funding for clients who have specialized needs or too many credit problems for conventional financing.
Here are a few examples for the use of hard money:
* Quick funding for time sensitive loans
* Use your equity for a real estate investment
* Short term loans
* You want to avoid the hassle of institutional loan processing
* You want a loan that has more flexible terms and conditions
* You cannot qualify for bank assistance, due to:
* Poor credit
* Tax liens
* Other liens
* Bankruptcy
* Foreclosure
* Divorce
* Medical emergencies
What Benefits Do Hard Money Loans Provide?
When speed is very necessary to complete a profitable transaction, it can make sense to pay for short-term private money rather than walk away from the deal.
Owners of expensive properties benefit when they want to cash out large amounts of their equity via refinance loans, equity loans, equity lines of credit or debt consolidation loans.
Real estate investors use private money loans because there are no lengthy timelines or restrictions required by bank loans.
Borrowers facing foreclosure also benefit. When the foreclosure process starts, the borrower may be so far behind that conventional lenders hesitate to refinance the loan. A private money lender may be willing to offer a new loan. You can use the funds to pay off the original loan and secure enough time to sell the property and find a new place to live.
Borrowers who have temporary problems can use a private money loan to rebuild their credit. By making payments on time for a year or two, they create the opportunity for a future refinance at a more favorable rate.
Borrowers who own properties that do not meet institutional guidelines also benefit from the use of private money. Frequently the condition of a property disallows for the initial financing with conventional money; or, the structure of the deal may also be a factor. Unconventional property characteristics or deal structure might include:
* Needs Improvement
* Needs funds to provide occupancy of income property
* Not eligible for sale in the secondary market
* Does not meet requirements for conventional underwriting
* Held in probate, trust, partnership, LLC or corporation
Commercial Loans
Commercial Loans are one of our specialties. Our underwriters will analyze your loan request by doing an onsite inspection, researching title, and other material facts to create a unique loan program for you.
Need operating cash from your real estate equity at a very decent rate? That’s what we do!
Bridge Loans
Typically short term financing, with Billy A you can negotiate this up to 15 years. This loan is often used to harvest the equity you may have in your property.
This option is perfect for people changing careers, or may have impaired income or credit. Funds may be used for any purpose including down payments on new property purchases.
Interest only loans with Billy A offer an excellent option for those requiring temporary money.
Fix and Flips Loans
We are a premier fix-and-flip lender.
We finance a variety of property types and conditions, including but not limited to: bank owned properties that are severely damaged, HUD foreclosures, short sales, auctioned properties, and more.
We provide quick pre-approvals and quick closings and high loan to value ratios (LTV). Many of our clients have secured and closed on contracts due to our speed that allowed them to compete with “all cash” contracts.
Finish my Home
Did you start to remodel and run out of money?
Did you buy a property that needs repairs so you can sell it?
Used for short-term financing only, our Interest Only loans are very reasonable.When the property is exptected to be re-sold or re-financed in the near future. Interest only loans with Billy A offer an excellent option for those requiring temporary money.
We lend on all types of Real Estate in most situations
Residential
-Single Family Residential
-Mobile Homes
-Condo/Town homes
-2-4 units OK
Commercial
-Retail
-Office
-Industrial
-Single and Multi-Purpose
Situations
-Fix and Flips
-Foreclosures
-Bankruptcies
-REO’s
-Construction
-Construction Completion
-Bridge Loans
Lending Criteria
-No credit considerations
-No seasoning requirements
-Minimal Financial Documentation (Repayment ability must be shown)
-Purchase
-Refinance
-Cross Collateralization OK
-Loan term from 3 months to 3 years
-Loan Amounts from $10,000 to $1,000,000 plus
-Fast approvals
-Fast fundings