Hard money lending & investing is actually available in all states, not limited to just Alaska. It is the practice of offering loan financing based on real estate assets. A potential borrower secures the loan according to the value of the real estate property to be financed. These type of loans are often issued at a higher interest rate than those through a residential, commercial, or conventional loan. They are rarely issued by a deposit institution or a commercial bank. Hard money lending is somewhat similar to bridge loans, which typically have a similar set of criteria for the lending process along with the price to take out the loan. Bridge loans are generally referring to an investment or commercial property which does not yet qualify for a traditional financing loan due to its transition status, such as when a property is being assessed for value. Hard money lending, on the other hand, typically refers to both asset-based loans as well as loans when a foreclosure or bankruptcy are occurring.

Most hard money loans and mortgages are provided by private investors or financing agencies, which are typically located in the same geographical area as the property to be financed. In most cases, the borrower's credit rating is not important, since the loan is insured by the collateral property. On average, the typical value to loan ratio is somewhere around 65 to 70%. In other words, if a real estate property is valued at around $100,000, the financing agency may advance between $65,000 and $70,000. The low loan-to-value provides an additional level of security for the financing lender, in order to protect their interest in the property should the borrower fail to repay the loan, and the property goes into foreclosure.

Hard money lenders require that they be placed first in line on any liens against the property. If not, many lenders will offer a "Cross Lien,” where additional interest is secured in a second piece of real estate.

The term "Hard Money" is a phrase that is used almost exclusively within Canada and the United States, where loans of this type are quite common. Hard money lending developed as a "last resort" alternative in the commercial real estate industry, helping property owners to secure capital for their holdings. The practice of hard money lending began somewhere in the late 1950's, at a time when the US experienced dramatic changes to the credit industry.

If you are looking for a hard money lending institution, the professional staff at Stream Line Funding can help you to meet your financing goals. They have a proven reputation for customer service and satisfaction, and look forward to serving you! Visit their form website at: http://datapresence.com/streamline/index.html today!

If you are wanting to invest in real estate, one of the best in the business is Austin’s own Noble Capital, Inc.; I encourage you to visit their form website at http://datapresence.com/noble/index.html.

Barb Heldon writes for several community magazines in the central Texas area
http://investing-real-estate-alaska.blogspot.com
http://datapresence.com/noble/index.html