Hendrie Grant’s real estate career began in 1984 with the purchase of his first two family duplex income property. The following year, 1985 he funded his first hard money real estate loan. In 1996, he attended a half-day foreclosure seminar that ignited his passion — leading him to become one of the foremost foreclosure real estate experts in Minnesota.

Hendrie’s foreclosure business involved buying properties from owners, buying mortgages at discounts, buying liens, buying from banks, arranging leasebacks, and then selling properties for nice profits.

What is hard money lending?

Hard money lending is also referred to as a short-term bridge loan. Unlike traditional bank loans and most loan/mortgage providers, hard money lending doesn’t consider a person or company’s credit history for approval. Instead, the borrower secures the loan with some collateral, such as a house or buildng, and the loan amount is based on the value of that collateral.

Due to the risk of repayment involved for the lender, interest rates for these loans are usually higher than the rates for traditional loan options.

Keys for a new house

What is hard money lending?

Hard money lending is also referred to as a short-term bridge loan. Unlike traditional bank loans and most loan/mortgage providers, hard money lending doesn’t consider a person or company’s credit history for approval. Instead, the borrower secures the loan with some collateral, such as a house or building, and the loan amount is based on the value of that collateral.

Due to the risk of repayment involved for the lender, interest rates for these loans are usually higher than the rates for traditional loan options.

Why use a hard money loan?

Hard money loans are often used to finance an expeditious close on a property. For example, a person or company may use a hard money loan to quickly secure funds for a real estate or business transaction and then pay the loan back using a traditional bank loan or profits from the sale.

Hard money loans are sometimes also used to avoid foreclosure. A borrower could use the short-term loan to catch up on missed payments or buy their home back during or after a sheriff’s sale. For Hendrie this would only apply in the event the property was in a company or transferred to a company without the owners living in it.

If a commercial borrower is struggling to make mortgage payments, has a poor credit history, and cannot get a loan from a traditional lender he or she could approach a private lender for a hard money loan.

Minneapolis Skyline

Why use a hard money loan?

Hard money loans are often used to finance an expeditious close on a property. For example, a person or company may use a hard money loan to quickly secure funds for a real estate or business transaction and then pay the loan back using a traditional bank loan or profits from the sale.

Hard money loans are sometimes also used to avoid foreclosure. A borrower could use the short-term loan to catch up on missed payments or buy their home back during or after a sheriff’s sale. For Hendrie this would only apply in the event the property was in a company or transferred to a company without the owners living in it.

If a commercial borrower is struggling to make mortgage payments, has a poor credit history, and cannot get a loan from a traditional lender he or she could approach a private lender for a hard money loan.