Every month or so, we’ll receive an application for a 12-month business purpose hard money loan on an investment property with plenty of equity to come in below the 65% LTV threshold. Yet during the process of underwriting the loan, we realize that what looked like a straight forward business purpose bridge loan on an investment property has now become a consumer purpose hard money loan.
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Bridge Loans (2)
One of the challenges for frequent foreclosure auction buyers who utilize hard money financing to leverage their return on investment (ROI) is the time that it takes from buying the property at auction to receiving cash-out funds on the refinance loan. Under most circumstances, this takes about 21-25 calendar days. However, First Capital Trust Deeds has a program that shortens the process from 25 days down to just 7 days.