What is a hard money loan?

Posted by | March 13, 2018 | Business | No Comments
hard money loans

If you are a real estate investor in need of money to purchase a property, it’s imperative to consider hard money loans. Many real estate investors have a hard time finding the resources they need to complete a deal and achieve the success they desire.

There are experts that have the resources and knowledge to guide and assistant you in getting funding for your project. It’s crucial to do your research in order to find a team of professionals who can help you get access to cash for investment.

Hard Money Loan Explained

Hard money loans are generally provided to real estate professionals to finance real estate deals. When you find a lucrative investment opportunity you need to move fast and secure the loan you need to close the deal.

A hard money loan is a great option for investors who do not have the good credit required to obtain a regular bank loan or from other traditional source. It’s a collateral-backed loan, meaning that you have to pledge an asset in order to be approved and given the loan.

Finding a Reliable Hard Lender

hard money loan questionsFinding a an appropriate hard lender involves some research on your part. If you are seeking a hard money loan because you have been turned down by a bank or other financial institution, then you might be tempted to select any hard money lender out there.

Resist the temptation to choose the first lender you come across and perform your research first. Not all hard money lenders provide the same level of service. Some lenders are passionate about ensuring the success or satisfaction of all parties involved and will help you fund your real estate deal. Find out about the lender’s reputation and experience in the field before you ultimately decide to work with them.

Evaluate The Time Frame

Hard money loans are usually granted far more quickly than conventional loans. Loans from banks typically take several weeks to process due to the stringent requirements and various steps involved in the application process, but hard money lenders can generally approve and fund the deal in less than a week. If you need to take advantage of a deal quickly before the competition does, then you need to consider hard money loan.

Prepare Your Loan Documentation

Hard money lenders focus mainly on the potential profitability of the property you are purchasing to make a decision on whether or not to fund the deal. Consequently, you are more likely to be granted a loan if the lender feels they are protected and will be able to get their money back in case you default on the payment. Typically, a hard money lender will want to feel confident that you can pay back the loan without any hassles.

No Credit Requirements

As discussed earlier, hard money lenders don’t care about the borrower’s credit history or credit score. They are primarily concerned with the value of the collateral you will use to secure the loan. They are less concerned with your credit score or credit history. Issues on your record such as a short sale or foreclosure can be overlooked if you have the resources to pay the interest on the loan.

Benefit From Expert Guidance

An experienced and reliable hard money lender analyzing a financing request or investment project will give you their honest opinion and point out any issues that could potentially hurt the transaction.

The lender may point out issues you were not aware of that could be an obstacle or hindrance to success of the project if not resolved promptly. The advice or input from the lender could also cause you to review your plans regarding the investment property in order to avoid losing money on the deal.

Get Started – Contact Delancy Street Right Away

If you want to get the right guidance and secure the cash you need for investment, get in touch with Delancy Street immediately. Their experienced professionals are standing by to assist you.

ECA Ray

About ECA Ray

Ray is a manager at ECA Tech Inc. , Toronto's top Ecommerce software, website development and digital marketing company. He has been a programmer for 24 years. He has some good experience in integrating designs to various software. He has volunteered in numerous IT related free training courses all over North America and contributes articles on numerous blogs. He also participates in continued education classes at local colleges.

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