Benefits of Buying Property with Hard Money Loans
Posted by macrocrowd on March 25th, 2015
No need to worry about credit ratings
The main requirement of real estate funding via banks is convincing a bank that you can repay a mortgage loan. Banks have strict regulations that demand clean credit records for loan borrowers. This unfortunately prevents many willing buyers from accessing funding.
Hard money loans are better since you do not have a clean credit record to get funding from a private real estate investor. Better still, your private financial information will rarely be scrutinised during loan processing.
Since the key concern of hard money lenders Florida is the asset that is backing your loan, all you need is to present a property that has potential to generate high returns on interest or on sale should you default on payments.
Unlike conventional banks, when you seek out a hard money loan, you can invest faster in the real estate marketplace USA. Hard money lending does not have complex procedures for private funding approval thus providing borrowers with opportunity to access quick funds.
For borrowers, these loans also come in handy where a quick deal needs to be closed on a potentially profitable property investment.
Hard money loans also provide financing guarantee when your large scale construction project runs into unexpected budget constraints.
Access to full financing
Where bank loans are used to finance property purchase, you may be required to provide a down payment first as the bank covers the balance amount on a purchased property. On the other hand hard money lenders can easily provide you with the entire funding that is needed for property purchase.
Since these private real estate lenders work on a method of pooling funds, it is easier and much stressful to fund borrowers as each lender contributes only to a portion of the total funds.
Your property gets you the private funding
Hard money loans California are normally granted on property risk-return analysis by the lenders.
Before the hard money lenders invest in the real estate marketplace they must be convinced by the investment quality of the property. As a borrower this means that you do not need to worry about how you will convince the lenders to approve your funding.
Hard money lending in real estate tends to favor commercial properties that charge high occupance rates or properties that can quickly be flipped for good profit. If your property fits this criterion then you are a top candidate for private real estate funding.