Lending a Helping Hand

By Hawaii Renovation Posted in: ImproveTips

Out of money and short on time? Is your project running over budget?

Hard money may be your answer.

Hard money is a short-term loan based on an asset such as real estate, gold, precious stones, 401k or other retirement accounts. A hard-money lender, or private lender, looks to the asset/collateral as the last-resort source of repayment rather than the borrower.

Hard-money lenders are private lenders, not banks. They are individuals in the local area who want to earn a large and significant return on their money using a reasonably safe and tangible vehicle (like real estate).

Hard-money lenders are not high-risk lenders. They are quite conservative at offering loans in a first mortgage position and in rare cases, a second mortgage position. Because of their conservative approach using asset-based lending, few hard-money lenders were injured.

As a general rule, hard-money lenders don’t care about credit scores, income, debt-to-income ratios, bank balances or payment records. The collateral is of utmost importance and primary focus for the private lender.

Term and Structure

A hard-money loan is typically of short duration, six months to a year, with no pre-payment penalty. There is usually no amortization of principal during the loan term — the principal amount being due in one lump sum at the end of the loan term.

The borrower makes monthly, interest-only payments as long as the loan is outstanding. A hard-money loan should be thought of as a short-term answer to a financing need and not a long-term solution. As such, the hard-money lender will be looking for the borrower to provide a clearly defined exit strategy when applying for the loan.

Pacific Investment Group operates as a consulting firm focusing on the facilitation of hard money loans. We own a proprietary list of local private lenders and we bring borrowers and qualified deals to our lenders.

Pac. I. G. LLC does not operate as a lender or a broker. We introduce our private lenders and potential private lenders to hard-money lending opportunities. We ensure that each lender is represented by a legal firm specializing in Hawaii real estate, and we usher each deal through the escrow process, where the transaction is further scrutinized by licensed professionals for the protection of both borrower and lender.

For borrowing or lending opportunities, don’t hesitate to contact Pac. I. G. LLC at 808-2-MONEY-2 or 808-266-6392. You also can apply for a loan at www.2-MONEY-2.com.

CONTACT: 808-2-MONEY-2 •266-6392
WEBSITE: www.2-MONEY-2.com