There was a really good article in the Wall Street Journal about Hard Money loans some time back.  It was informational to borrowers and investors alike.  It spoke of the fact that Hard Money loans account for around 2% of overall home mortgage loans originated last year, up sharply from prior years. Hard Money loans still remain a viable option for many borrowers needing a temporary loan solution.

The Article featured a Dallas attorney who has been doing Hard Money loans as a “side business”.   He believes that originating home loans in the current environment, when many economists believe housing is at or near the bottom, is less risky than putting money in the “volatile stock market or opaque bond market.”

He states further “I can’t drive by and look at those stocks and bonds.”  Plus, he says, investing in residential real estate earns “passive income that doesn’t require much work from me.”

The interest rate paid on these investments can be anywhere from 9% to 14% with 12% being fairly typical.  They can range in size from $150,000 to $1,000,000 or larger with a term of 6 months to 7 years or more. These loans are secured by real estate, ie. 1 to 4 unit residential – investment property and owner occupied purchases or refinances, 5+ unit residential (deemed commercial), office buildings, strip centers, large commercial, etc.

The main qualification for a borrower is: 1. Equity or a good down payment and  2. Ability to repay the loan.  Bad credit is typically not a problem. If they do not make payments, they could forfeit the property that was the security for the loan to the Investor.

If you are in Northern California areas like Santa Rosa, San Francisco and San Mateo, Santa Clara or in Southern California areas like Santa Barbara, Glendale and Arcadia, we are always available to answer any of your questions or help you out with our hard money alternative financing!

Read original article here:


Forest Tardibuono is a CA BRE Broker with almost 30 years experience in real estate and lending.  He owns his own company which is operated by family.  His number is (707) 523-2099.  Get more information on his website @


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