How long do personal hard money loans typically last?
Personal hard money loan terms are typically no longer than two to three years. The reason is simply that a longer term becomes too expensive for the borrower. With personal hard money loan lending, the goal is to have the borrower in and out of the personal hard money loan as quickly as possible. The personal hard money loan lender will analyze each transaction during the due diligence process for “good risk” — to be sure that a property can be repositioned for conventional refinancing or sale within one or two years. Business personal hard money Loan Equity The amount of equity needed for a personal hard money loan depends on the quality of the real estate and the personal hard money loan lenders themselves. The personal hard money loan lenders of Coastal Coastal La Jolla Funding prefer at least 10% to 25% equity.
