subject: Securing A Real Estate Loan From The genies Of The Real Estate Business [print this page] If a genie tells you that hell give you three wishes, what will you wish for? Are you going to ask for riches and fortune or wish for world peace? Unfortunately, genies are just a figment of our imagination as man has yet to prove the existence of these magical creatures who grant our greatest desires at the drop of a hat. Dont be saddened, however, because there are certain people who can be compared to genies for they make our life much easier.
In the world of real estate investing, lenders of real estate loan can be compared to genies. They help make an investors dream come true. And even if banks and mortgage companies refuses to help cash-strapped real estate entrepreneurs, non-traditional financiers are still more than willing to be of service to these investors.
Hard money lenders are some of the good sources of real estate loans. Although they dont possess magical powers like the genie in Aladdins tale, they can make it possible for an investor like you to pursue great real estate deals.
Hard money loans are asset-based. This basically means that the lender uses the value of the property offered as collateral as basis for his decision to approve or reject a loan application. Thus, even you have a poor credit score or have no verifiable source of income, youll qualify for a real estate loan as long as the collateralized property that you are offering has a high value and a great deal of equity.
Lenders of hard money are quicker to react as compared to their traditional counterparts. When you borrow money from the bank, it takes you about a couple of months to get the funds that you need. When it comes to hard money lenders, however, it takes them not more than a week to process your loan application. Therefore, you can get the needed funds in a day or two should the lender agrees to provide financing for your real estate investment.
If you want to get in touch with a hard money lender, the first thing you need to do is to get referrals from people who have already worked with these non-traditional lenders. Unlike banks and mortgage companies, most lenders of hard money dont have store-front offices so finding them can be a little complicated. Another option is to surf the Internet since most lenders nowadays advertise their services online.
