Monthly Archives: March 2014

Approach Commercial Hard Money Lenders

Today there are number of commercial money lenders who are offering short term loans to borrowers with real estate backed properties as a collateral. The interest rate of private hard money lenders are higher if we compare to traditional banks or financial institutions, but still many people prefer approaching these lenders as it is easy to get loan approval from them as their lending criteria is much more simpler as compare to traditional lenders.

While approaching a financial institutions or banks they check all their criteria such as repayment capacity and credit history to justify the decision of whether to give a loan or not. On the other hand commercial money lenders have a different criteria as they are not credit driven or worry about the repayment capacity of the borrowers but assess the value of the property being kept against the loan amount. With the growing commercial money lenders it can also be seen that some commercial lenders offer only commercial bridge loans in deals like purchase and renovation of foreclosure properties, foreclosure bail out loans, rehab loans and mortgage loans for short term tenures like 1 to 5 years time.

Today in this fast communicating world a user can can apply online for the commercial hard money by filling in the form with all the details which shall be quickly processed within 5 business days as lenders do understand that investors are looking for quick money to invest in their business deals. It is up to the individuals and their circumstances to approach the hard money lenders as many benefit while some may end up paying heavy interest charges or losing their collateral due defaults.

How Hard money Can Help You

Today most of the real estate investors rely on private money loans for financing their property investments. Some time it gets a bit difficult to take loans from the hard money lenders, as some lenders do not understand the concept of rehab and resell investment strategy being used by thousands of real estate investors all over the country. Nowadays there are various types of hard money lenders who can match up with your funding requirements:

• Lenders doing commercial properties
• Development lenders
• Bridge lenders
• Lenders who give loans for high end homes
• Single family home lenders

By understanding your business model & its requirements, you can identify the best matched hard money lender that help your investing needs. Private hard money lenders are different from the bank, as they do not sell the paper to external institutions . Private lenders are group of investors who require higher interest rates. That’s why they choose to invest in real estate.

Things to keep in mind while applying to Hard Money Loans

If you have a fantastic deal or need funding in two weeks or faster, but you cannot go to a local bank because of your bad credit. Then hard money loans are just for you. All you need to do is pay more money for the loan bottom line than your local banker, but will be easier and quicker to close your deal. Below are some of the important things that one should keep in mind when applying for a hard money loan: