subject: The Perks Of Asking Hard Money Lenders For Help [print this page] Thanks to hard money lenders, it is easier for cash-strapped real estate investors to complete good deals and make big profits. These non-traditional financiers are great alternatives to institutionalized lending companies, such as banks, mortgage companies, and credit unions. It is because they can provide financing to an investor even if the latter has a poor credit rating.
The reason why these private lenders are not concerned with a borrowers credit record is that the type of financing they are offering, which is called hard money loans, are asset-based. To verify a loans eligibility, hard money lenders assess the after repair value of a property for which the loan is being made. If they think that the property has a great potential and can fetch a good price once it has been repaired and renovated, then they are likely to approve the loan application.
If you are having trouble securing financing for your investment properties, they you should consider obtaining hard money loans. Listed below are some of the perks of borrowing money from hard money lenders instead of seeking the assistance of traditional lenders:
Lenders of hard money can process a loan application in just a matter of days, with some of them accomplishing such a task within 24 hours. Thus, you dont have to wait for weeks or months to determine the outcome of your application
Because your loan application can be processed in a flash, you can get the funds that you need as soon as possible.
Unlike their traditional counterparts, lenders of hard money are easier to deal with. You dont have to wait at long lines just to talk to the person in charge. You also dont have to negotiate with a tough processing panel that will make you wait for months only to reject your application.
You dont have to submit reams of paperwork and tons of documents as most hard money lenders require only the appraisal of the property to verify a loans eligibility.
Obtaining hard money loans would be mostly beneficial for rehabbers as lenders of hard money are willing to provide coverage for the propertys repairs. By using hard money to finance a project, you can make huge profits without spending money from your own pockets.
Terms, however, vary from one hard money lender to another and interest rates can be significantly higher than those in traditional loans. Therefore, to avoid confusion on your part, it would be best to educate yourself about the nuts and bolts of hard money lending.
