Hard money loans for your next real estate project investment
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The biggest challenge the real estate investors are facing today is in getting the loan from traditional sources like- banks or nationalized firms to buy a property. The reason is the traditional sources firstly verify the borrower’s income, decide the loan amount on the appraised value of the property and then go through a number of procedures to grant the loan. If all does not go well, they strictly say no.
That’s where the investors will find the gates open at the hard money lenders’ doors. Although hard money lenders also keep the property as collateral before lending the amount to the investors, they never consider the investor’s credit. They just want the loan amount should be equivalent to the property’s value.
Close the deal Quickly
On average, the banks take 30 days to grant the loan, which is really a huge time especially for the real estate investors wherein the property’s value fluctuates after every week. Hard money loans are far better that can be passed in a matter of days.
So, in the tenure of 30 days, instead of waiting for the loan for a single deal, it’s better for the investors to seal more investment deals through hard money loans. It proves to be an attractive alternative to bank loans.
Convenience comes at the top
Presently, people are ready to pay more for good services. Perhaps, the low-interest bank loans and other charges may allure the investors, but the mandatory requirement of the income documentation, bank statements, leases, and tax returns completely drains out the borrower.
Real estate investors who do not approve of such lengthy processes that involve so much hassle, they prefer hard money loans. They may charge a little more interest, but there is an assurance of getting a loan for a short duration with no headaches of collecting ad submitting the documents.
Improve buy and sell
If real estate investors had taken the loan from the traditional resources for one property and in the middle of the term if they find any profitable deal, then they cannot buy the new one unless the previous one is sold or its loan repayment is done.
In such cases, the hard money provides the flexibility to buy new property even if the investor is already engaged in another property. This way the investors will earn more with the increased volume of property’s buy and sell.