Instant Hard Money Loans

Instant hard money loans are usually lending agreements between the owner of a parcel of property or an investor who wants to buy a piece of land but lacks much of the funds for purchase and a local financier who is willing to take some risk to make a high rate of return on the loan amount. There are many unregulated states where hard money lending agreements can take place, however Tennessee and Arkansas have placed such tight restrictions on these types of transactions that there is almost no activity in those particular states for this sector of the lending business. Instant hard money loans are deals struck that provide the borrower currency within hours of the agreement. It is the absolute last resort of last resorts for a desperate borrower who cannot find any other source of funding and needs money right now and not tomorrow. It is a lending agreement that will take full advantage of someone's misfortunes due to poor decision making or just a bad set of circumstances to make a lot of money.

One will never get one of these types of lending agreements from a bank because a banking institution deals with currency depositors have entrusted with the financial organization, and because in most cases, stockholders demand conservative and trustworthy banking practices. Even credit unions, which are more loan friendly and willing to work with a person on an individual basis rather than on a template like traditional banks will not make instant hard money loans. Additionally, large nationally known chain lending companies typically do not have this kind of loan in their repertoire of lending possibilities. Going online to look for instant hard money loans will not bring up too many possibilities, although some of the sites that are available boast of ten thousand or more lenders interested in providing instant borrowed money for this type of agreement. With most all of the lending agreements, a credit check starting with a social security number is never required. The cold hard financial facts are the only criteria for approval.

So a real estate agent/investor has found a very desirable parcel of land that could someday provide home site for five hundred families. The tract has just been placed on the market within the past seventy hours for a million dollars. The agent investor knows that the property will be gone within two weeks because all of the growth of the nearby city is moving in that direction. Through her dealings with real estate in the area, the agent/investor approaches a wealthy rancher who is also a provider of instant hard money loans and asks of his interest in providing at least a seventy percent lending agreement. The rancher knows the value of the parcel of land quite well and knows the land will one day bring a high rate of return of the developer. After some negotiating, the agent/investor has secured a lending agreement resulting in a seventy percent, seven point three year hard money loan. The lending money would be based on the realtor/investor putting up one hundred thousand dollars of her property and the rancher helping her find another investor for the other two hundred thousand within forty eight hours.

Making such a lending agreement will put the realtor/investor in a position to immediately begin plans to develop and build the five hundred home sites that could eventually bring her a thirty or forty million dollar payoff. The rancher knows the realtor and feels secure in her ability to pull the while deal off and the rancher will make about a hundred thousand dollars on the three year loan. It is, as the saying goes, a good deal for everybody. This scenario had all the trapping of instant hard money loans: urgency, a form of desperation and a chance to make a lot of money. "For I say unto you, that except your righteousness shall exceed the righteousness of the scribes and Pharisees, ye shall in no case enter the kingdom of heaven." (Matthew 5:20)

If anyone has traveled the toll roads of America, the fact that food at the gasoline stops is pretty expensive compared to the same stuff a few miles away in the middle of a town is not hard to see. Travelers are paying for convenience and the fact that there is no other choice on the toll road. Kind of like convenience store food bought in the middle of the night. Three dollars for a small can of tuna, yikes! The same is with instant hard money loans. If a person is so desperate and so needy and so stressed about no other possible way to turn, instant hard money loans may seem like a beautiful alternative. And in some cases, these lending agreements might be a viable alternative but much care should be taken before making so costly a financial decision.

Where does a person turn when there seems to be no answer to the impossible situations of life? The reality is that all people face tough times and all people look outside themselves for relief. Drugs, alcohol, sex, amusement, pleasure, thrills and bright lights are many people's prescription for relief from tough times, but the problem is that after all those things are over with, people's problems are still there and no change has taken place on the inside. We are what we are. Jesus Christ says that He has come that people might have life and have it more abundantly. A person may pray for a loan to satisfy a certain obligation, but what God wants is for people to pray to have Him in their lives, for He is the final and absolute source of truth and light. In Him are all the answers to any issue we can ever face.

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