Hard Money Landing California

Top 5 Advantages Of Hard Money Lending That Can’t Be Overlooked

The shady looking hard money lenders have made the hard money loans ill-famed for the perceived tough lending process and the hidden high-interest rates. The lenders who are doing the business in the dark alleys are actually making the investors afraid of hard money lending. Don’t fret!

Now, the scenario has changed. The states have put strict regulations and licensing compulsion on the hard money lenders that they have to follow in every condition. Although the downsides of the hard money loans still exist, but the advantages are outweighing, which proves to be rewarding to the borrowers.

real estate hard money lenders

Here, we have summarized the benefits of leveraging hard money loans for your next real estate project investment:

  • Less often they say- NO

The biggest challenge the real estate investors are facing today is in getting the loan from the 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 not goes 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, but they never consider the investor’s credit. They just want the loan amount should be equivalent to the property’s value.

  • Close the deal atthe flash of light

On an 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 fluctuate 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 the 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 the 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 drain out the borrower.

The real estate investors who do not approve of such lengthy processes that involve so much hassle, they prefer hard money loans. The  may charge a little more interest, but there is 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.

  • Get referral business

In the pursuit of real estate hard money lenders, you can get in touch with other real estate professionals or hard money lenders who may have good deals that can benefit you. The referral network may introduce the new properties in which you can invest and get the finance off the bat.

So, get connected with the network in place and provide your feasible expectations for the ROI, then hard money lenders would automatically provide you the suggestions.

Summing it up

Speed, convenience, and flexibility are the key elements that have not remained just jargons, while they are becoming all-imperative in the real estate market. That’s where hard money lenders excel because they make the loan processing smoother to let the investors focus on the important tasks. They are stupendous not only in making the investors’ bags full of money, but also help them in achieving their goals on-the-fly.

Add wings to your business with easy-peasy hard money loans!

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