What is a hard money loan?

A hard money loan is a short-term bridge loan, primarily used for real estate transactions. The terms of the loan are based mainly on the value of the property being used as collateral rather than the credit history of the borrower. While banks do not offer these types of short-term loans, the lenders at Zinc Financial are prepared to work with borrowers to minimize financial risk and prepare the most profitable exit strategy for home flippers.


How does hard money work?

Hard money loans are commonly sought by home flippers who wish to resell the property they are using for collateral in their financing. The high cost of the loan is balanced out with the fast repay period, with most loans repaid in one to three years. The purpose of the hard loan is to allow the investor to get the property on the market as quickly as possible.


Because these types of loans are offered by private lenders, the terms are often significantly more flexible adding to the convenience of hard money. Additionally, lenders may even be flexible with your collateral, from the investment property to a retirement account, based on the lender and circumstances. Ultimately, however, hard loans tend to be a much more convenient financing option for home flippers.


How do I know if hard money is right for me?

It’s no secret that real estate investing can be a lucrative route to financial stability. Of course the “getting there” aspect is no small feat. If you’re seriously considering a hard loan, Zinc Financial is here to help. With any big decision comes big questions and our representatives are happy to work with you to come up with the best, most profitable and strategic plan for your next home flipping project. Get in touch with us today to get started moving towards your future!