Coin lending refers to a type of loan. However, what sets it apart from other types of loans is that it is secured by real estate. Moreover, they are considered short-term loans or loans of last resort.
In general, they are used in various real estate transactions. The lender is a company or individual, not a bank. Continue reading to learn more about a trusted San Francisco hard money lender in San Francisco.
Following are some of the main features of this loan.
- They are mainly used for real estate transactions. And the money comes from companies or individuals, not from banks.
- This type of loan is usually given for a short period. The goal is to raise money quickly with lower rations of LTV and higher prices.
- Since these loans are traditionally not enforceable, the financing time is usually shortened quite quickly.
- It is interesting to note that these loan terms are agreed upon between the borrower and the lender. In addition, these loans use real estate as collateral.
- Even though paying can result in default, they still leave a lot of profit for the lender.
How do fixed-term loans work?
Usually, the terms of a hard money loan are based on the value of the property and not on the creditworthiness of the borrower. Since classic lenders like banks are not creditors, private or corporate lenders are very interested in this business.