subject: Benefits Of Tapping Hard Money Lenders [print this page] Many have spoken against them but hard money lenders may be considered modern day heroes by those in the real estate investing world.
If they were super heroes, they could actually be compared to The Flash as hard money lenders work fast. Compared to traditional lenders, they are very fast. Banks and other traditional lenders take around 30 days to process applications. This is due to many factors that will be mentioned later. On the other hand, private lenders take only days to process applications. That means youll get to know whether your application is approved or rejected fast. If it is unfortunately denied, then you can file it to another lender and try your luck there.
One reason why hard money loans are approved fast is because these lenders assess only the deal you are presenting. They will look at the property you plan to rehab and determine whether you will indeed earn profit from it. If you will get returns from it, then they will earn as well and will grant you the loan.
Banks and other traditional lenders, on the other hand, carefully assess a persons creditworthiness or his capability to repay the loan. They consider the current income of a borrower and his credit score. This slows down the process. You could lose a very good and cheap fixer upper to competition, and in turn waste an opportunity to make money, if you dont get funding fast.
Hard money lenders understand the sense or urgency involved in real estate investing. And since it is asset-based, they will only earn profit if you do. That also means that the sooner they grant you the credit, the sooner youll finish the project, and the sooner youll be able to repay them.
Another benefit of using hard money is it is easier to obtain. In banks and other traditional lenders, loans are released only after they are approved by a number of personnel. A hard money lender, meanwhile, usually operates on his own. So, if you convince him to lend you the money, youll get the money. Its that easy. Remember that these are people who have ready cash and are looking for profit opportunities just like you.
Because they usually dont have offices, it will be easier to find hard money lenders online. For anything more you need to learn about hard money lenders and anything about real estate investing, you can check REIwired.com. There youll find articles, sound files, and videos that can help you start in real estate investing.
