Facts about Hard Money Lenders

Author: Daniel Mc Grey


Share:More hard money lenders are in demand than ever as the number of real estate investors who require their assistance continue to grow. Because they provide the best financing alternative to bank loans and traditional mortgages, many entrepreneurs are keen on borrowing funds from them. Hard money loans, which are the funds offered by these creative lenders, are easier to obtain. It is because they are asset-based and hard money lenders look into a collateralized propertys after repair value or ARV when assessing a loan application. Because of this, a borrower doesnt have to undergo tedious credit checks and face a processing team just to qualify for a loan. Thus, it allows a real estate investor to use his time on other important matters, such as finding the next deal. Aside from this particular advantage of hard money lending, this type of non-traditional financing can bring more benefits to real estate investors. Listed below are some of them: 1. Because hard money loans are asset-based, hard money lenders are not interested in your creditworthiness. Therefore, you can still borrow money from them even if you have a bad credit rating. 2. Lenders of hard money can process a loan application in just a few days, with some of them doing it within a 24-hour period. As soon as they are finished appraising the property for which the loan is being made or reviewing simple financial documents that you have submitted, you can quickly find out if your application got approved or rejected. 3. Some lenders dont require you to submit credentials so you dont have to dig up piles of documents just to make a loan. In addition, you can easily talk to these financiers, unlike their traditional counterparts. 4. You can rake in huge profits without spending money from your own pockets. Some hard money lenders are willing to finance the repair cost of a property, a set-up that would mostly benefit those who rehab fixer upper homes for a living. In addition, some lenders can provide 100% financing on some deals so you can generate income without spending money up front. However, a downside of using hard money loans to finance a real estate project is that interest rates are relatively higher. In addition, lenders may ask for origination fees, which are used to process a loan application. Terms also vary from one lender to another so it would be wise to have a background on hard money lending before borrowing hard money. Meanwhile, you can find more details on hard money lenders on www.Rehab-Real-Estate.com.About the Author:

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