Not all Loans are the same, and neither are all lenders. There are some very specific times and reasons when you should decide to use Commercial Hard Money Lenders.
Commercial Hard Money Lenders are an excellent alternative to traditional bank Loans for many borrowers. And while the cost for a hard money loan might be more than the price of a bank loan, there are many benefits to the borrower. But in order to know that hard money is the best choice for you, you need to understand when these Loans are most appropriate and beneficial.
When you find a great deal and know that there are going to be many other buyers interested in a property, you should always consider using hard money. You can secure this loan much more quickly than a traditional bank loan. Rather than the 3 to 6 months that it could take a bank to fund your loan request, hard money lenders could complete the process in just about a week. Added benefits include less paperwork for you and far less stringent guidelines to qualify for hard money.
That brings us to the next reason to work with Commercial Hard Money Lenders. If you have poor credit or no credit, a traditional bank or lending institution is not going to consider loaning you money. But hard money is based on the value of the property rather than the borrower’s credit score and creditworthiness. So hard money lenders could be your only option, but one that lets you make the purchase, even with personal credit challenges.
Most banks are only looking to capitalize on the masses who need a very cookie-cutter loan. This means that you need to have excellent credit, be buying a property with secure value, and you have a stable income. But where do you go to get a loan when you don’t meet all of these average guy criteria? The answer is hard money lenders. These lenders have the ability to offer terms to meet your needs, they don’t care as much about your personal credit, and they are willing to look at a property’s potential to determine the value of the loan. All of these benefits are worth paying a little bit more for, especially when you have no other legitimate options.
Hard money can also be a viable option when you need to access some of the equity that you have in a property that you already own or are purchasing. It could be a commercial property that houses your business, or it could be a personal property. Either way, you can access some of the equity in your property with this short-term loan so that you can pay off bills, invest in your business, or even start a new business. Other complex purchases, such as one with multiple pieces of collateral, are not acceptable to a bank or mortgage company. But Commercial Hard Money Lenders are willing to look at any opportunity to determine if there is the potential to make a good deal. All of these unique situations are good reasons to pay a little more for hard money.
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.