Hard Money Loans
Hard money loan is secured by real property. These loans are short term loans that are primarily used for real estate transactions. Then lenders are individuals or companies but not banks.
Hard Money Loan
It is usually taken out for short time. It is a quick way to raise money at a higher cost and lower LTV ratio. The funding time frame is reduced because these loans are not traditionally executed. Property is used as collateral for these types of loans.
The terms of this loan often can be negotiated between the lender and the borrower.
Commercial Bridge Loans
Bridge loan is to secure the short term financing necessary to bridge the gap that take place when you purchase the commercial property, it take time to make the necessary improvements or attract suitable tenants.
Fix And Flip Hard Money Loans
This type of loan can be useful if you are an investor or flipper interested in buying properties that require all cash or hard money. This will provide you 85% of the purchase price and cost of rehab. This allows you to sell the property as quickly as you can.
These loans are used to finance the construction of new residential or commercial projects. The term of this loan runs from 6 months to 2 years.
Buy And Hold Hard Money Loans
These loans can benefit the investors that are looking for monthly income or to build a real estate portfolio in the strong market. This allows buyers to borrow for purchase of rental property.
This offer amazing financial properties for both buyers and investors. Banks and property owners want to unload these properties fast so they only bother for the buyers who have cash in hands.
These loans are suitable for those who are looking to buy commercial or residential properties. This is a key way to get cash by refinancing an existing mortgage for a greater amount.
Hard Money Lending
Hard money lending can be viewed as an investment. This is used as a business model and is practised by many lenders.
Benefits Of Hard Money Loans
Fast loan approval and funding
This makes the real estate investors offer stronger
Leverage is used to get more deals
Income history and perfect credit score are not necessary
Reinvesting equity from an existing property to new property
Get approved for loan with recent issues on record
How Hard Money Loan Works?
These have terms that are mainly based on the value of the property used as collateral, not on the credit worthiness of the borrower. Hard money lenders are private individuals or companies that see potential in this type of risky venture. These loans are sought by property flippers who plan to renovate and resell the property that are used as collateral for financing. The higher cost of hard money loan is offset by the fact that the borrower intends to pay off the loan relatively quickly. The term of hard money loans is mostly for 1 to 3 years.
Hard Money Loan Is Used By.
Real estate investors mostly choose hard money because of many reasons. The ability of the hard money lender to fund the loan quickly is the main reason to choose. These loans can be funded within a week. The application for loan can approved in a day or two and in some cases in can approved same day. The ability to obtain funding at faster rate is significant advantage for a real estate investor.
Why Choose Hard Money Loan?
Most of the private lending companies do not care about your financial position. Private lender close the matter in few days if the borrower is well prepared and property don’t have any red flags. Speed is a deal breaker when multiple offers are on the table.
Flexible Repayment Schedules:
Private lender has the freedom to change the repayment schedules and other conditions, within the contract as per the negotiation and relation with the borrower. They are not held to strict guidelines and regulation that are followed by traditional lenders.
Collateral is the most important factor for the hard moneylenders. The borrowers having decent deal and borrower profile can get funding easily from hard money lenders.
Paperwork And Qualification:
This requires minimal paperwork than tradition lending. Borrowers are qualified based on their project and equity. Borrowers with less than perfect credit are also qualified.
What Our Clients Say?
Here are few reviews and comments from our clients.
The Financing Compass worked extensively with me to help me anticipate some of the issues that my business may face. Not many lenders would go to that length. They’ve been extremely supportive and a great resource.
Financing Compass enabled me to take advantage of an incredible opportunity to relocate and expand my business, at a pivotal time. The support I received from Financing Compass staff was priceless.
Working with Financing Compass helped me develop my business plan, ideas, and brand before getting started so that I was prepared to open a successful business when I received my loan.
Are You Looking For Our Services?
If you want hard money loans to start your business you can contact us. We will provide you with the best service that will benefit your business.