Whatever money resource you have in hand is soft money. However, when you borrow money rather than payback within a schedule, it is hard. Thus the money you loan is called “hard” money. Many hard money lenders charge you a certain amount of interest that will start from 7-8% of the loan amount. In the USA you will have to pay 20% up to 30% for residential property. However, the percentage would vary for commercial properties which are 30-40%. But, what exactly is the reason why the Americans need to borrow hard money? Well if there is a requirement for premium payment or equity payment you may need more money.
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