What Is 'Hard Money'? Is It Available In Bonney Lake Or Pierce County?

Understanding Hard Money Lending

Hard money lending, often referred to as asset-based lending, is a financing method primarily used by real estate investors. These loans are typically short-term, ranging up to 12 months, and come with higher interest rates, usually between 10-15%. Unlike traditional bank loans, hard money loans are secured by the property itself rather than the borrower's creditworthiness. This makes them an excellent option for properties that may not qualify for conventional financing due to their condition or other factors.

Key Features of Hard Money Loans

Collateral-Based: The loan is secured by the real estate asset, allowing for quicker approval processes.

Short-Term Financing: Ideal for fix-and-flip projects or situations where the property will be sold or refinanced within a year.

Interest-Only Payments: Borrowers often make interest-only payments during the loan term, with a balloon payment for the principal due at maturity.

Exit Strategy Requirement: Lenders typically require a clear plan for repayment, such as selling the property or refinancing into a traditional mortgage.

Local Hard Money Lenders in Bonney Lake and Pierce County

If you're considering hard money lending in our area, here are some reputable local lenders:

• Juniper Capital: Serving Tacoma and the South Sound region, Juniper Capital offers alternative financing solutions tailored to real estate investors' needs.

  Juniper Capital Corporation

• Intrust Funding: Based in Puyallup, Intrust Funding provides hard money loans with quick funding times, making them a reliable choice for investors.

  Intrust Funding

• Accolend: As a premier hard money lender in Pierce County, Accolend offers competitive rates and flexible terms to finance your investments efficiently.

  Accolend

Alternative Asset-Based Lending Options

Beyond traditional hard money loans, there are other asset-based lending products available:

• Griffin Funding: Specializing in asset-based loans, Griffin Funding assists borrowers in Washington who may not have significant income but possess substantial assets. This can be a viable option for securing a home loan without traditional income verification.

  Griffin Funding

• Pacific Premier Bank: Offering asset-based lending solutions, Pacific Premier Bank provides financing secured by assets such as accounts receivable, inventory, or equipment. This can be beneficial for business owners seeking non-traditional financing avenues.

  Pacific Premier Bank

Conclusion

Hard money and asset-based loans can be powerful tools for real estate investors, especially when traditional financing isn't an option. However, it's crucial to thoroughly understand the terms and ensure you have a solid exit strategy in place. If you have any questions or need further assistance exploring these options, feel free to reach out. I'm here to help you navigate the complexities of real estate financing in Pierce County.