CONSIDERING A HARD MONEY LOAN? READ THESE 4 STEPS TO SUCCESS!
HARD MONEY LENDERS ARE A VIABLE OPTION FOR THOSE REAL ESTATE INVESTORS WHO NEED TO ACQUIRE FINANCING FOR PROPERTIES ON A MOMENT’S NOTICE, OR WHO MAY HAVE DIFFICULTY OBTAINING A LOAN FROM CONVENTIONAL FINANCING METHODS. IF YOU ARE CONSIDERING A HARD MONEY LOAN, THESE 4 STEPS WILL ENSURE YOU SUCCESSFUL FUNDING:
START WITH THE RIGHT LENDER
Not every hard money lender is the same. They vary in quality and in terms, so choosing the right one is important. The best firms in the industry offer quick turnarounds, decision times, reasonable rates, and terms that leave more than enough room for you to invest profitably. Even better, investigate the options available there before approaching your bank. You may save yourself a lot of wasted time, effort and money.
CHOOSE THE RIGHT PROPERTY
Hard money loans aren’t right for every property. Your Lender will usually look to make loans on properties that leave you with opportunities to make a significant profit. If you can earn a significant return on a property, it becomes much more likely that you will be able to afford to pay off the loan.
CAPABILITY TO REPAY LOAN
Hard money loans are also an option for those who may not have the best credit, since many lenders are willing to work with individuals who have impaired credit histories. Hard money lenders offer loans for poor or bad credit because, unlike a bank, they aren’t always dependent on your credit score. What usually matters to the lender is what you can do from this point forward, instead of what you’ve done in the past.
ASSIST LENDER FOR FAST CLOSING
One of the biggest benefits of going with a hard money loan is the speed of execution. Hard money lenders can typically move more quickly and fund your loan in weeks or days instead of months. To achieve a fast closing, work with your Lender to get the information quickly and on time.