Mae Capital LLC
d/b/a Maecap
It’s important to know your funding options when investing in real estate. Sometimes traditional bank loans are not the best option, so knowing where to turn is crucial. Hard money lenders are a great alternative, offering short-term loans backed by real estate collateral. These loans are helpful in situations where you need quick funding for a new investment, flipping a property, or when conventional loans aren’t an option.
*Understanding Hard Money Loans: A Guide for Borrowers*
In today’s fast-paced real estate market, securing financing can often present challenges—especially for those who need funds quickly and don’t necessarily fit the traditional lending criteria. This is where hard money loans come into play, offering a practical solution for those seeking bridge financing. Eric Brahms, the president of Mae Capital, LLC, is at the forefront of this alternative lending solution, providing capital for borrowers in need of swift, asset-based loans.
Hard money loans are secured by real estate rather than the borrower’s credit score. This gives borrowers with limited options a chance to secure the funds needed for various projects, from purchasing real estate to funding renovations. Eric Brahms understands that each borrower has unique needs, which is why he emphasizes the importance of collateral in the lending process. At Mae Capital, the focus is on the value of the asset at hand—this means that even if traditional banks or lenders have turned you down, there is still an opportunity at Mae Capital.
Common Scenarios
One of the most common scenarios where a hard money loan might be beneficial is when a borrower needs a bridge loan. This type of financing is typically used for short-term needs, such as buying a new property before selling an existing one, or funding renovations to increase a property’s value prior to a sale. Traditional lenders can take weeks or even months to finalize a loan, but Brahms and his team at Mae Capital strive to provide fast turnarounds, allowing borrowers to seize opportunities without delay.
The process of securing a hard money loan with Mae Capital is straightforward and transparent. Upon reaching out, borrowers can expect an initial consultation to discuss their specific needs and the value of the collateral they are offering. Eric believes in making the borrowing process as smooth and accessible as possible, which means working closely with clients to understand their objectives and provide tailored funding solutions that fit their situation.
Conclusion
While hard money loans can be a lifesaver for many, it is essential for borrowers to weigh the risks. Interest rates on hard money loans can be higher than conventional loans, and the terms are often shorter, generally ranging from a few months to a couple of years. However, for those who understand the real estate market and have a clear exit strategy—whether that’s refinancing into a traditional loan or selling the property—these loans can be immensely advantageous.
Brahms encourages borrowers to conduct thorough research and carefully assess their financial situation before proceeding with a hard money loan. It’s crucial to have a solid plan in place to ensure that the investment will return more than what is owed in interest and fees.
In conclusion, if you’re a borrower in need of rapid financing solutions, Eric Brahms and Mae Capital, LLC may have the right option for you. With a focus on bridging the gap between needs and resources through asset-backed financial solutions, hard money loans can provide the essential capital needed to realize your real estate ambitions—quickly and efficiently. Take the time to explore your options and consider how a hard money loan could be the bridge to your next opportunity.
What Is a Hard Money Loan?
Hard money loans are short-term secured loans that use the property you’re purchasing as collateral. You won’t find one from your bank: Hard money loans are offered by alternative lenders such as individual investors and private companies, who typically overlook mediocre credit scores and other financial factors and instead base their decision on the property to be collateralized. While you might jump through fewer hoops to get a hard money loan, this type of lending comes with risks and isn’t the best option for many people.
Benefits of Hard Money Loans
Hard money loans provide several benefits for borrowers. These include:
- They close faster than a traditional loan does. From start to finish, a hard money loan might take just a few days.
- Their underwriting process is less rigorous than with a traditional loan. Why? Hard money lenders tend to place more weight on the value of a property used as collateral than on a borrower’s finances.
- Hard money lenders pay less attention to a borrower’s credit score and debt-to-income ratio. That’s because hard money lenders aren’t required to follow the same regulations that traditional lenders are.
Risks of Hard Money Loans
While hard money loans come with benefits, a borrower must also consider the risks. Among them are:
- Interest rates are typically higher. Hard money lenders typically charge a higher interest rate because they’re assuming more risk than a traditional lender would.
- They may require a higher down payment than a traditional loan would. Again, that’s because of the risk that a hard money lender is taking.
- The term is typically much shorter than what’s offered on traditional loans. While a regular mortgage typically can be repaid over the course of 15 or 30 years, hard money loans often require repayment in as little to 6 months and as long as three years.
Eric Brahms
Eric Brahms is local resident of Greenwich CT., a husband, a father of 2 children and a french bulldog. He is an American businessman/entrepreneur and the President of Mae Capital, LLC. Mae Capital is a company based in Greenwich, CT that provides funding for equity and commodities trading, real estate development, and the purchase of precious metals, diamonds, and vintage watches.
