What is a hard money loan? The term “hard money” was first used in the 1950s for a loan based on property assets instead of credit. Essentially, this type of loan is a financing tool for real estate investors. There are many advantages with flexibility and speed being the top benefits. Are you a real estate investor that needs money fast? Do you flip homes and have equity or plenty of money for future loan payments? Hard money lenders are ready to work with you so you get the loans you want.
Make Your Offers Stronger
Are you looking for ways to make offers stronger? If you are able to get hard money loan financing, your offers will look much stronger. Nothing looks better for a real estate investor than the ability to get hard money loans. These types of loans are especially useful when the property you want to bid on already has multiple offers using conventional bank loans. Why? Because a conventional bank loan is much harder to get. It means more time is wasted waiting on a bank to approve a loan that may or may not go through. A hard money loan simply stands out in all of the right ways.
Banks are not trustworthy. As a real estate investor, how many times have you seen a bank pull funding from buyers in the middle of escrow? Don’t put your deals in jeopardy. Use hard money lenders to secure property since they aren’t known for killing funding for what are considered to be arbitrary reasons. They are a reliable source when it comes to financing in comparison to traditional lenders.
Hard Money Lenders Offer Fast Approvals and Funding
Stop using conventional methods when you need a fast loan. Nothing is faster than a private loan with a straightforward and simple process. A borrower only needs to fill out a loan application that’s standard. You may even be eligible for conditional approval during a short conversation with hard money lenders. A bank wants you to fill out a tremendous amount of paperwork. Do you have time in your busy schedule for that? It could also take weeks for your application to be received and approved. By that time the property that you wanted could be purchased by other investors.
Private money loans are approved faster and funded within just a couple of weeks. If you desperately need to save a real estate deal, you may be able to get private loans funded within 3 to 5 days. When compared to bank loans that take 30 to 45 days to fund on good terms, hard money lenders make it much easier to use their services.
Private Money Loans Are a Great Negotiating Tool
Do you need to be able to offer sellers better motivation to accept your offer? Private funding allows you to offer cash prices that are lower with the additional benefit of a quick close. Being able to negotiate these things is paramount when it comes to motivating sellers. They are more likely to work with you and close a sale sooner, making your bid a top priority. This is the exact leverage you need to garner more deals. Being able to purchase properties with cash gets more offers accepted at lower prices. Do you utilize all-cash auctions? Work with a private money lender to get the cash you need to get great real estate investments fast.
Do You Have Issues Preventing Loan Approval?
It can be difficult getting loan approval if you have recent issues on your record. Banks will not fund loans if you have loan modifications, recent short-sales, bankruptcies, or foreclosures on record. Since private money lenders are more asset-based, they are not concerned about those types of issues. They mainly focus on equity or down payments made on properties of interest. Get off of the sidelines and back into investing whether you have blemishes on your record or not using hard money loan programs.