When you need money quickly and don’t have access to traditional lending options, hard money credit can be a great option for you. In this comprehensive guide, we’ll cover everything you need to know about hard money credit in Los Angeles, from the basics of what it is to the different types of lenders out there.
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What Is Hard Money Credit?
Hard money refers to any financial instrument that is not backed by the government or a loan. These products can be used by lenders and investors to produce high-yield returns, as they are less likely to suffer from credit rating damage or default. Hard money products can also be used in conjunction with securitization and other financial arrangements, providing even more potential opportunities for return on investment.
Some of the most commonly used hard money products include loans, notes, certificates of deposit (CDs), and real estate investments. Loans are the most common form of hard money product, as they offer borrowers access to capital at a lower interest rate than traditional loans. Borrowers can also use hard money loans to purchase assets, such as real estate or businesses.
Notes are similar to loans but often come with higher interest rates and longer terms. CDs are typically deposits that offer fixed rates of interest for a set period of time. Real estate investments typically involve purchasing property and then selling it at a later date for a profit. Hard money products can provide substantial returns for both lenders and investors, depending on the particular product involved.
