Hard Money Lenders: A Big Help To Real Estate Investors

Many real estate investors consider hard money lenders as valuable allies

. Because of these non-traditional financiers, investors can easily acquire the investment properties of their choice since they have access to quick cash. In addition, they can make quick decisions on financial matters for they know that there is someone who will back them up.

Despite the presence of the word hard in their name, lenders of hard money are easier to deal with compared to their institutionalized counterparts. With them, you dont need to wait at long lines for hours just to talk to the person in charge. Thus, you can save a lot of time and you can use your energy in other important activities such as finding good deals.

The financing offered by these lenders is called a hard money loan, a type of asset-based financing wherein a loans eligibility is determined by assessing the after repair value, or ARV, of a collateralized property. What makes them different from conventional bank loans is that hard money loans are still accessible to investors and borrowers with poor credit score. Because they are asset-based, the lenders of such loans give importance to the ARV of the property, for which the loan is being made, over the borrowers credit record.

Like what was mentioned earlier, hard money lenders are easier to approach. You dont have to submit reams of paperwork and other credentials just to file a loan application. You also dont have to wait months just to determine the results of your application since most of these non-traditional lenders can process your request in less than a week.

Asking lenders of hard money for help can also be advantageous to rehabbers of fixer upper homes. These creative lenders can provide financial coverage for the repairs and renovation of a property. Thus, by obtaining hard money loans, a rehabber can rake in huge profits without spending money up front.

However, hard money lenders have their own set of criteria when approving or rejecting loan applications. While some can make decisions by simply conducting an ocular inspection of the collateralized property, there are some lenders who require their clients to present simple credentials, such as W-2s, when applying for a loan. Terms, on the other hand, vary from one lender to another.

Therefore, to prevent confusion on your part, you have to educate yourself with proper information about hard money lenders. You should visit www.rehab-real-estate.com, a website that contains quality articles and videos, which can boost your knowledge on hard money lending and real estate investing.

by: Daniel Mc Grey

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