Inheritance Hard Money Loans
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The “baby-boomer” generation is on course to pass the greatest wealth transfer in human history.
Here is a questions we get asked all the time:
Can I get a loan on a property I don’t own yet but will own in the future due to the inheritance?
If you ask a traditional credit institution like a bank – you will be rejected. With a inheritance hard money loan – you can access the capital in your future inheritance before you actually get the asset. We provide creative finance solutions to the following individuals:
- Loans for inherited real estate
- Sibling buyouts (or any other beneficiary buyouts)
- Loans for cash inheritance
- Probate loans and estate loans
- Structured buyout for future trust payouts
What is the process of getting an advance against your future inheritance?
The process and application for getting an estate loan against your future inheritance is much like getting a lawsuit loan, only it requires the cooperation of the attorney or trustee that is responsible for the estate. The time and cost to close will depend on the complexity of the estate/probate, and the loan amount that you seek.
If your probate/trust is currently open or in the process of being opened, HM Capital can provide you with cash in a manner of days. Both the burrower and the attorney/trustee of the estate have to approve the transaction in order to supply the funds. The best way to start the process is to give us a call and talk to one of our advisors.
To start, we’ll need to contact your attorney, and examine the asset in question (the property you are inheriting, or your expected inheritance value). Next, we’ll have to verify the documents showing you will be getting the inheritance in a certain allotted time. The loan term is usually a lot shorter than a typical loan – meaning the repayment period is usually months, not years.
There are many valid reasons to seek an inheritance advance:
- Pay for legal fees – probate can be an expensive process, with high legal fees. Adding to that possible repayment of inheritance taxes, and maintenance, heirs can instead control costs by a proactive inheritance hard money loan to cover all expenses.
- Sibling/beneficiary buyout – not all heirs want to inherit the asset – they prefer straight cash. We can provide the funds to ‘buyout’ the beneficiaries who prefer to get paid – so you can retain the real estate.
- Pay off tax liens – you might want to get a clean title on the property when you inherit it – and use an advance to pay off expensive tax liens, mechanic’s liens, or any small loans that might exist on title.
- Personal expenses – probate can take months and years. Some personal expenses cannot wait – like medical expenses or rent.
No. Once we approve you for an advance, there are no monthly payments required.
We can usually get clients approved within a few days, depending on the status of probate/legal proceedings.
Yes. In fact, this is one of the most common uses of the service. Not everyone wants to own inherited properties, some prefer cash or other arrangement.
The cost ranges and is based on the length of the advance, risk levels, the asset, and type of probate. Typically rates are slightly higher than standard private loans. You will be required to pay some closing costs (escrow, insurance) and points on the advance.
Yes. Once we provide you with an advance against a future inheritance you can pay off debt like credit cards or a personal loan with high interest.
There are a few things owners do before they sell the house: a yard sale, calling a contractors to make repairs before a sale, a moving company, termite treatment, and others. The goal – contact service people that have a high chance to interact with homeowners right before they put the house on the market, and ask for a referral.
The service person will provide you with the contact information so you can call the homeowner and place an offer to purchase the property before it hits the market. In exchange, you can offer referral exchange (you will refer to the service person business) or better – cash when the deal closes. Here is how this will look like:
- You connect with a moving company and offer $500 for every signed contract to buy a home from a referral.
- You get a call from the mover that a family is moving to another town and they placed an order for a month from now.
- You call the family and offer to purchase the property for a discount at a fast sale.
- Once you lock the property and close escrow – you pay the service person who referred you the deal $500.
Getting an advance on your future inheritance with HM Capital is a unique process that provides our clients with fast, efficient funding. If your are a beneficiary to a probate process and need funds, we can help you access the equity in the property/inheritance sooner without needing to wait for months or years for the estate the settle. With our unique process you can get help in the matter of days:
- No upfront fees
- No monthly payments
- Approval in days, not months
- All documents reviewed and signed by your attorney