subject: Why Most Borrowers Prefer Hard Money Loans To Conventional Financing [print this page] One of the essentials of investing in real estate is securing hard money loans. As we all know, it is important to have access to good source of funds because it helps a real estate investor obtain the property that he or she wants to invest in. So if youre thinking of making money in the housing market, you should get yourself acquired with reliable hard money lenders.
Meanwhile, one of the most common questions common folks have when it comes to securing hard money loans is that why would a borrower use this type of financing when there is a much cheaper alternative in the form of traditional bank loans?
The answer to this question is fairly simple. One of the reasons why borrowers, particularly those who invest in real estate, is the speed of funding. As we all know, banks and traditional lending institutions usually a take at least 45 days to finance purchase of residential real estate, 60 to 90 days to fund commercial properties, and at least 120 days to finance the construction or development of real estate. When it comes to hard money, however, lenders can release the funds within two weeks should the borrower qualify for a loan. There are also certain instances where a borrower can secure hard money within 24 hours.
Another reason why borrowers prefer hard money loans to conventional mortgages is that they can still get the funds they need despite their low credit score or their failure to meet bank requirements. In most cases, traditional lenders will shoot down a loan application the moment they discover that the borrower has poor credit rating. In addition, banks dont usually fund a loan secured by a property that requires repairs and renovations prior to its use.
These are the some of the biggest reasons why real estate investors turn to hard money lenders for help. Borrowers with less-than-stellar credit rating can get hard money as long as they are going to use it to purchase or rehab a house that has high after repair value. Using hard money is also best suited when purchasing land since banks are prohibited by the law from providing financing for raw and undeveloped land.
If youre looking for a good source of hard money loans, you can go to www.RehabHardMoney.com. The website has an extensive database of hard money lenders in different parts of the country. So if you want to get financing for your real estate investments, go to RehabHardMoney.com now.
