Posts Categorized: Hard Money Tips

A hard money loan is a specific type of asset-based financing which is secured by some property. It is a short term bridge loan that is often taken as a last resort. But it has many other applications since it has a short approval process and does not require your credit score. Unfortunately, there are many misconceptions about hard money loans. Here are some of them: They are Meant Purely for People with Bad Credit With hard money loans, you can access financing regardless of your credit score (good or bad). Private money lenders use an asset as security. It can be crucial for people…
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Are you facing a hard time trying to finance a project? Do you wish to explore a hard money loan option? If so, you must have come across a lot of information concerning hard money loans. While it’s easy to agree with everything you hear, it is equally possible to get misleading information. For this reason, it can be quite overwhelming to sort out what’s true or fiction because there are lots of myths around the subject. But the truth is, hard money loans, available via a private money lender, are quite common. And, if you understand how to utilize them, they are effective. To…
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Hard money lenders are usually investors looking to put their money to work. This means that the relationship between you and a hard money lender is fundamentally different from the relationship between you and your bank. This difference in the relationship can have substantial benefits to you. Here are five reasons to choose hard money lenders over banks: Partners When you take out a mortgage from a bank, you gain a creditor. A bank’s sole concern when you apply for a loan is your creditworthiness and its sole interest in funding your project is to make sure it is repaid. A bank, in short, does…
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Many people are familiar with a soft money loan, like a car loan, but are unaware of other lending options. For example, a hard money loan is a method of borrowing money without going through a mortgage broker. This type of loan can be a convenient method of borrowing money for a home, and has many benefits. Here are a few things to consider before reaching out to your hard money lender. The Benefits of a Hard Money Loan It’s Quicker: Working with a hard money lender is quicker than going through a bank for a loan, and you can typically expect to receive your…
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Research findings indicate that about one-third of Americans have bad credit, and if you are part of this statistic, then you probably want to think about hard money lenders. Nobody wants a poor credit rating, but sometimes downward financial spiral hits hard. Mainstream financial institutions have strict policies and defaulting them can make it hard for you to handle pressing financial issues. Hard money lenders take a different approach from conventional banking or financial institutions. They allow you to borrow against assets acceptable to them. Failure to repay your loan within the agreed period means that they will dispose of your asset used as collateral….
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If you are a real estate investor, hard money loans should excite you. Compared to bank loans, hard money loans are easier to secure. The leniency of these types of loans makes them ideal even for investors with low credit scores. The loan-to-value ratios of hard money are 60 to 70%, which means that the lenders are at a lower risk of losses. The hard money loan industry has remained a mystery to most people. There is a misconstrued notion about hard money lenders and their way of conducting business. In order to correct that, here is a guide on hard money lending. Finding Hard…
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Most people who want to advance towards financial stability need to borrow some money from time to time. Unfortunately for people who have fallen into tough times and defaulted on loans in the past, getting financing from mainstream financial institutions is hard. Default or late loan payments result in bad credit ratings. The traditional financial institutions usually have very rigid policies. Due to these policies, lousy credit rating often sounds a death knell to your creditworthiness as far as they are concerned. This state of affairs means that the 68 million Americans who have bad credit ratings may be locked out of mainstream financing. If…
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A bank can take weeks between the time you apply for a loan to the time your loan is funded. This can pose a problem for real estate businesses who need a fast turnaround. Since each piece of real estate is unique, sellers can receive a number of competing offers. Being able to offer quick payment may make the difference between getting the property or losing out. Hard money lenders, however, can approve and fund hard money loans in as little as seven to eight days. Here are five reasons hard money lenders act faster than banks: Shorter Applications Loan applications that private money lenders…
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California hard money loans might be a fantastic device when you’re in a crunch and not able to get your assets from somewhere else. However, hard money lending has its minuses and pluses, but these minuses will diminish when you find a bank whom you trust and with whom you can strike an accommodating arrangement. Here are seven questions you should ask before signing your transaction. 1. What is Your Experience? You’ll need to investigate what the bank has done in the past and who their clients are and were. While most would likely be hesitant to share names, they can disclose to you what types of borrowers…
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Hard money loans in California have several purposes.The property in which one is planning to invest in can be used as collateral against private money loans. To ask for such loans, one needs to be a qualified investor. There are a number of situations when one may need hard money loans, as outlined below: 1. When You’re Doing a Rebuilding Project This project attracts a number of investors because it involves purchasing old properties and refurbishing it in order to sell it at a profitable rate. Such deals are funded by private money lenders in California. Generally, the poor condition of such properties makes it possible…
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