subject: Hard Money Financing: The Advantages Of Borrowing From Hard Money Lenders [print this page] One of the key ingredients of succeeding in real estate investing is securing good financing. Having a good source of funds is important in this business for it can help you obtain great investment properties, which could bring you a lot of opportunities. And for a real estate investor, one way to secure financing is to acquire the services of lenders of hard money loans.
A hard money loan, or HML, is a form of asset-based financing wherein the lender approves the loan based on the after repair value, or ARV, of the property that serves as collateral. Unlike in traditional financing, the lender doesnt rely on a borrowers credit history just to approve the loan. As long as the property in question has a good potential, the hard money lender will release the needed funds.
According to experts, HMLs are the perfect loans for buying investment properties. Because lenders of HMLs do not care about a borrowers credit score, an investor can still obtain loans for his business even after being rejected by banks and other traditional financers. In addition, a borrower doesnt have to wait for weeks or months just to have his loan application approved. It only takes a few days to process his application since lenders do not have to review and scrutinize tons of documents and paperwork.
Another advantage of acquiring HMLs is that some hard money lenders provide 100% financing for some deals, which is something that cannot be given by banks and other traditional lending institutions. In addition, some HML lenders can take care of property repairs, allowing real estate investors to maximize their budget and minimize their expenses.
Meanwhile, you can visit RehabHardMoney.com if you require the services of a hard money lender. It can help you save a lot of time since the web site allows you to meet dozens of lenders of hard money loans, who can provide you with what you need. For more details, log on to www.RehabHardMoney.com today.
