Searching For a Reputable and Trusted Resource for Hard Money Loans? Private Money Utah Is Your Source!

EEveryone has felt the effects of the changes in the lending environment, particularly real estate investors. The glory days of being able to finance 10 properties at a time through your local bank are long gone. Because banks have cut off stated income, subprime, and other loans that cater to real estate investors, private money lending has grown substantially over the last few years. With no credit or income to qualify for a bank loan, real estate investors have turned to residential hard money lenders and other sources for private money loans.

But what is a hard money loan? When bank loans were easy to get prior to the Savings and Loan Crisis and between 2004 to 2007, hard money lending was primarily used for loans that needed to fund at the last minute. In todays real estate market, private money mortgages are becoming the rule rather than the exception for real estate investors that rely heavily on financing for purchasing properties. A hard money loan is a type of loan where the collateral used for the loan, in this example real estate, is what qualifies you for the loan. A hard money loan can fund faster than a traditional bank loan because it is the real estate or collateral that is most important to the lender, and not the tax returns or bank statements of the person applying for the loan.

Private money lending or hard money lending has continued to grow as more real estate investors and other borrowers are demanding these types of loans. If banks continue to keep the purse strings tight, most people will have no other option than to look for loans in the private money lending space.

Posted by Corey Curwick on January 5, 2012

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