hard money loan

hard money loan

Collateral Asset Valuation and How It Works

Nearly all lending involves some sort of collateral that the borrower allows the lender to place a “lien” on. A lien is a legal instrument of record, which ties up the collateral so that it may not be sold, refinanced or transferred without the debt first being paid. Depending on the type of loan you are looking for, some lenders will be more specific about what collateral they need, while others may just request a certain dollar amount, and accept it in any form of asset that you have available.

Essentially, collateral gives the lender recourse if you don’t pay. In hard-money lending, the collateral is real estate of some sort, whether it be land, residential, retail, etc.

Where Asset Valuation Comes into Play       

When a non-cash asset is being used for a loan or line of credit, it has to be of a certain value. Offering someone the title on a $50,000 property in exchange for a $450,000 loan, for example, will not cut it. To get approval for the collateral that is put forth, it must be valued appropriately. Asset valuation is a simple process where the lender will determine the exact value of whatever asset you put …

Collateral Asset Valuation and How It Works Read More »

hard money loan

Are There Risks to a Hard Money Loan?

Hard money loans are a useful tool to help borrowers who cannot qualify for a traditional loan for a variety of reasons, including poor credit, pending litigation, foreclosure actions, etc. Like all loans, they do come with a certain level of risk. Hard money lending is different than traditional lending, which is where most of the common pitfalls can be found. Before you dive into this process, here’s what you need to know.

Financing Is NEVER Guaranteed

Right up until you’ve got the pen in hand, ready to sign your documents, a hard money loan can still fall apart. These loans are generally backed by private investors, rather than banks, which means the funds may not be readily available at closing. If an investor changes their mind or something goes wrong at the last minute, the lender may not be able to perform. It is imperative that the borrower do their due diligence on any Lender they begin to work with. A Lender who has a history of failing to fund loans at closing will have a poor reputation within the industry.

To prevent any loans falling apart last-minute, H&O Capital works with a prospective client upfront communicating in detail …

Are There Risks to a Hard Money Loan? Read More »

$225,000 Second Mortgage – Mixed-Use Building- Bronx, NY

 

$225,000 Second Mortgage – Mixed-Use Building – Bronx, NY

H&O Capital Funding was contacted by an investor who needed some quick funds for another transaction. He knew that he had some equity in his mixed-use property with two apartments and a store in the Morrisania section of the Bronx. H&O Capital was able to close the deal is less than two weeks, allowing the investor close on his other deal without a hitch.

H&O Capital Funding  has helped countless real estate buyers, sellers, lessees and lessors achieve their goals. Our legacy is unwavering commitment to the communities we serve. Houlihan & O’Malley Commercial Real Estate Services specializes in four distinct, yet overlapping, areas of business: Commercial Brokerage services, Private Mortgage services, Appraisal Services and Advisory services.

For more information on loans that we offer, visit our website.

 …

$225,000 Second Mortgage – Mixed-Use Building- Bronx, NY Read More »

$300,000 First Mortgage – Vacant Land – Yonkers, NY

 

$300,000 First Mortgage – Vacant Land – Yonkers, NY

H&O Capital Funding recently closed a loan on a vacant parcel of land in SouthEast Yonkers, just north of the Bronx. The borrower approached H&O needing a small loan to help him complete his $1m+ purchase, where he plans to build a retail store to take advantage of its busy location. While it took some time to iron out the particulars, the deal closed in a flurry of activity as the sellers were leaving the country for an extended period of time and needed to close in under a week. H&O Capital was able to get it done on just two days notice, making for one happy borrower (and seller!).

H&O Capital Funding  has helped countless real estate buyers, sellers, lessees and lessors achieve their goals. Our legacy is unwavering commitment to the communities we serve. Houlihan & O’Malley Commercial Real Estate Services specializes in four distinct, yet overlapping, areas of business: Commercial Brokerage services, Private Mortgage services, Appraisal Services and Advisory services.

For more information on loans that we offer, visit our website.

 …

$300,000 First Mortgage – Vacant Land – Yonkers, NY Read More »

Mezzanine Capital Funding Loan – Westchester County, NY

H & O Capital Funding would like to announce a recently closed loan in Westchester County, NY.

Blanket Mortgage Loan of $5,000,000

This borrower came to H&O Capital Funding looking for a quick cash infusion for their business. H&O was able to provide a $5 million blanket loan with a first mortgage on a warehouse property in Bedford, NY and a mezzanine loan on a retail shopping center near White Plains, NY. This deal closed in under three weeks.

For information on our services, contact us at 914-620-6432.…

Mezzanine Capital Funding Loan – Westchester County, NY Read More »