Lenders – Getting Started & Next Steps

Benefits Offered by Hard Money Lenders

Hard money loans are financing that’s provided by the non-institutional lenders. There are in fact many hard money lenders that are offering fast funding with good interest rates.

The borrower needs to do a thorough check with the reputation of the lender and the business and as you implement your research, you will be able to find that hard money lenders are able to give you a great advantage when it comes to funding a real estate investment project.

Different Benefits

Fast Approvals

One of the benefits with hard money loans is that investors could secure pre-approvals in only one or two days when they have submitted the documents which were requested by the lender. Hard money lenders actually focus if the assets comes with good market value and that the borrower equity is about 20%. Financing will be able to take place for only a less week than normal loans which usually takes for a month or more. When you are inquiring about hard money lenders, the big question would be on how fast they could fund.

Flexible Payments

Through the private lenders, you can then acquire more freedom when it comes to creating a customized repayment plan. But this freedom is not present with big financial institutions. Instead, you must accept the payment terms which were being set by the bank. But through private lenders, you will be able to talk with them and end with an agreeable repayment plan which you think is suitable for you.

Few Requirements Needed

When you are applying for a loan from normal financial institutions, you are expected to meet various hard-set requirements such as experience, income history and many more. It’s no secret that a bank approval can be stressful. With the hard money lenders, you will not be burdened about the various requirements. This would be as long as you have high-value assets that has at least 20% equity stake, there are good chances that you will be able to qualify with the loan.

Prepayment Penalties are None

If you acquire the loan from an established bank, you will be subjected to prepayment penalties if you are going to pay off the loan before its maturation date. Most of the fix and flip lenders will not charge prepayment penalties, so if you ever have extra cash and decides to pay off the loan before its due date, you will be confident doing it without worrying about being penalized for it.

Credit History is Not an Issue

With private lenders, less emphasis are placed on your weak credit history. This is because a private lender will base a loan approval on property value, borrower equity, etc. When you are able to meet such criteria, you will get a chance of getting funded.

Doing Loans The Right Way

Doing Loans The Right Way