When Hard Money Loans Are Used For Real Estate

Investing in real estate can be lucrative, but some investors might not want to part with a substantial amount of cash up front to purchase property.  “While real estate investment trusts (REITs) and real estate crowdfunding allow you to invest passively, some investors may prefer to own property directly.”  This column discusses how obtaining a hard money loan might be the answer for these investors.  These hard money loans are short-term lending instruments that can be used by real estate investors to help fund investment projects.  “This type of loan is often a tool for house flippers or real estate developers whose goal is to renovate or develop a property, then sell it for a profit.”  This column examines some of the pros and cons of using hard money loans and provides the reader with resources that they can go to learn more about these lending instruments.

See Rebecca Lake, Using Hard Money Loans for Real Estate Investments, Investopedia, April 2, 2016.