Utilizing Hard Money Loans,
property owners seeking mortgages for Colorado real estate
are able to leverage the value of existing real estate holdings to
obtain capital for the new real estate purchase. To minimize the risk, lenders using Hard Money Loans
often minimize the value of the collateral property that is used to
secure the loan to 60 to 70 percent of its value. Hard Money Loans are
risky for lenders.
Hard Money Loans are typically
issued by private investors or companies for projects lasting 3 to 36
months. A Hard Money Loan
is similar to a Bridge Loan
Whereas a Hard Money Loan refers to an asset-based loan with a high
interest rate, a Bridge Loan is normally used for a commercial or
investment property in transition.
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