REASONS HARD MONEY LENDERS FOR REAL ESTATE INVESTING CAN BE A SMART CHOICE
Financing your real estate with traditional loans is not exactly favorable if your credit history, risk elements of your property, or other reasons. It appears for now that it’s a trend that will go on for some time. Hard money lenders for real estate investing are different from traditional lending. They come in handy in these situations. In this article, we will discuss some of the reasons hard money loans lenders can be a smart choice for you.
A GOOD BUSINESS PARTNER.
Hard money lenders for real estate investing are good in analyzing your project and raise concerns that will make your project much better. These efforts are often because they know they are in the project with you. Hard money home loan lenders want to ensure success with you because they don’t want to take any loss.
HARD MONEY LOANS CAN FUND IN THOSE SITUATIONS WHERE CONVENTIONAL LENDERS WILL NOT WANT TO EVEN CONSIDER.
There are some situations where the bank or some other traditional loan lender would not even consider your loan request. Here are two situations:
Fix and flip loans
In fix and flips, loans hard money loan lender is a better option than traditional loan lenders. Hard money offer loan much faster and It is best for the fix and flip residential deals. The difference in funding the loans between traditional loans and hard money is one to two weeks for hard money sources and a few months for traditional. Traditional loan lenders always prefer long-term loans, they often don’t offer short-term loans. So, traditional home loan lenders won’t even consider your application.
Loans which have risk
When it comes to home loans, the banks will not consider a loan that falls outside their loan risk parameters. If you want to buy a home that needs a lot of work, the bank will usually turn you down for a home loan. The bank will consider too much risk to give home loan even if the value of the home which you like to purchase is expected to increase after you will work on it. The guidelines of traditional loans are very specific along with the requirements about the condition of the property. Hard money lenders for real estate investing are always ready to fund such projects. They can understand the fact that everyone can purchase the property at cheap-rates and can also be fixed at a reasonable price.
NOT CONCERNED ABOUT CREDIT SCORES
Traditional home loan lenders consider the credit score on the top of the approval process of the loan application. Hard money lenders for real estate investing are not concerned about your credit score. Because they believe in your potential to complete the project and pay back the home loan in time. Sometimes, there are few things in a life which happen and you can’t even control them, and due to that, your credit score takes a hit. Hard money lenders only require that you have sufficient equity in your property and an exit strategy.
THESE LOANS ARE VERY QUICK IN APPROVAL AND FUNDING
The hard money loans approval process is significantly shorter than the bank process. The documentation process is very simple and you will deal with only one person throughout the loan process and that person will almost always available for you. Hard money lenders for real estate investing have the ability to close loans faster and sometimes in as little as 24 hours.
MORE FLEXIBLE
Compared to conventional loan lender, hard money lenders for real estate investing are more flexible in these three ways:
- There are some situations where you need the money for short period of time like already discussed fix and flip loan, or you need some money to start a new business. Hard money loan lenders don’t take much time to release funds, even to a borrower which are opting it the first time. As discussed earlier, they have less paperwork and faster approvals compared to banks.
- As compared to traditional lenders, hard money loan lenders are very good in analyzing the reason and problem with the borrower to find a perfect solution that will save the project. Because of this advantage, it makes them a better choice.
NO LIMITS
Traditional lenders will not give you a loan if you already have more than one mortgage. Hard money lenders for real estate investing don’t have such limitations as their primary concern is the equity in the home. This makes hard money loans a good choice for you.
Final Thoughts
If you are interested in exploring the options of hard money lenders for real estate investing, please give us a call. We know that sometimes people have a harder time for getting a loan. That’s why we offer multiple different alternative financing options. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of the home loan. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process.
3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, without tax return, private hard money home loan, private hard money loans, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today and our specialists will be in touch promptly to answer your questions. We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.
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