Hard Money Lending – A Source of Income for Retirees

Looking for a source of income to sustain your comfortable living after retirement? There are many things to do and many fields to invest money in for a considerable income. Lending hard money can fetch you huge payoffs. You might have saved a lot throughout the years of your professional career. The post retirement period is the right time to invest the savings to make money. Hard money is a promising field for profitable investment.

Hard money loans are usually short-term loans. These loans are mostly made to investors in the real estate field. Real estate investors need money to purchase properties and then, they sell the properties to make colossal profits. Interest at an annual rate of up to 15% is charged on hard money loans. Availing these loans is synonymous with speed and simplicity. It is because, hard money lenders are no traditional financing institutions like banks.

Hard money lenders, often called private lenders, are none other than common people with lots of money to lend or invest. Why is this investment option safe for retirees? Lending hard money does not mean investing in any commercial field of market. Commercial investment is subject to market risks and therefore, the expected profit from such an investment is uncertain. The lenders are assured of huge returns and that too at higher rates.

A real estate investor can borrow between 65% and 70% of the total value of a property. Prior to lending a hard money loan to the investor, make a visit to the property and look at its all aspects. Most of the times, hard money lenders have almost nothing to do with the credit score or history of the investors. That is why it is very easy to borrow hard money from your acquaintances.