A hard money loan is a specific type of an asset-based loan financing where the borrower can receive funds that are secured by the value of a parcel of real estate. We include and issue hard money loans as another instrument in our overall investment strategy. If you are having trouble acquiring a traditional loan through a bank because of credit issues, Corner Lot can help. Due to the risk associated with hard money loans, the interest rates are typically higher than conventional residential or commercial property loans.
When a hard money loan is applied for they are issued based on the value of the real estate that is being collateralized. Corner Lot will usually keep the LTV (loan-to-value) moderately low to protect against too high a risk being taken. If the borrower fails to pay back the loan amount then Corner Lot would take possession of the parcel of land below market value. Such an arrangement allows for a hard money loan to be approved and also provides Corner Lot the ability to execute a safe risk/reward strategy.
We know that not everyone can obtain a loan through a traditional banking institution. Reasons such as a poor credit rating, improper income documentation and poor condition of the borrowers’ property are among various reasons traditional loans won’t be approved. We believe that providing hard money loans is a valuable investment vehicle that is protected by the Florida real estate market. It’s important to note from an investment standpoint that regardless of the outcome of the loan, Corner Lot usually can provide an ROI.
Our intimate knowledge of the Florida real estate market combined with our ability to issue hard money loans is just another way we benefit our investors and help build them wealth.
At Corner Lot, our knowledge of the Florida real estate market allows for us to build our investors wealth through many different investment strategies. Note purchasing is just another way that we can utilize our capital and flexibility to purchase just about any type of a secured real estate transaction in the state of Florida. We purchase land contracts, mortgages, deeds of trust and contracts for deed and we consider note purchasing to be an extremely important part of our overall investment strategies.
There are many reasons why note holders consider selling them. Freeing up capital for other investment opportunities, medical expenses, vacations, college tuitions, taxes, lifestyle simplification or retirement are all reasons why a note holder may want to sell. Corner Lot is able to benefit from purchasing these notes because we earn profitable returns on them.