Why Hard Money Lenders Are Better Than Banks
Are you a real estate investor looking for funds to finance your business? Do you want to secure a loan in only a matter of days? Do you want clear and better terms in repaying your loan? If you answered “yes” to all questions, then you should look for a hard money lender.
That’s right. Hard money lenders are the answer to your real estate investing needs. Forget traditional lenders such as banks, whose penchant for giving away loans is as frequent as rain in the Sahara desert. So if you want to have the money to fund your real estate investing business, find a private money lender.
And here’s why you should:
1. Hard money lenders base their decisions on deals. This means you can secure a loan from a hard money lender even if you have a bad credit score. Try doing that in a bank! Private money lenders don’t care about your credit history. What they‘re looking for is a profitable deal. And if you can present one, then you have got a deal!
2. You can secure a loan with a hard money lender in a matter of days! Have you ever tried obtaining a loan from a bank? Queued in long lines and talked to dozens of representatives only for your loan to be rejected in the end? Well that won’t happen with hard money lenders, who can provide you with the money in a matter of days. What is important is that you present a good deal. If a private money lender thinks that the house you want to flip has a huge potential to be sold immediately, then he will provide you the loan.
3. Hard money lenders could finance 100% of the deal. If you can propose a really good deal to a private money lender, chances are you won’t be spending a single dollar from your own pocket to complete a deal. Hard money lenders generally loan up to 70% of a property’s after repair value (ARV). So if a property’s ARV is $100,000, lenders can lend you up to $70,000, which would cover the purchase price and the repair costs for a house that you bought, say, for $45,000 plus an additional $20,000 for repairs.
4. There are hundreds of hard money lenders out there. Private money lenders can be found anywhere, but they don’t exactly post a “Hard Money Lender” sign in their front yards. For all you know, your next door neighbor could be a private money lender. All you need to do is find the correct medium that would grant you access to lenders in your area.
RehabHardmoney.com has been bringing together hard money lenders and borrowers for over ten years. Whether you’re a hard money lender or a borrower, the website can provide answers to all your real estate investing needs. Visit www.RehabHardMoney.com today and get that perfect loan you’ve always wanted. You could also log on to www.REIwired.com to learn the latest techniques in real estate investing.
Questions and Answers
Hard money lender real estate is one financing option borrowers with poor credit can utilize to purchase a home. Hard money loans are substantially more expensive than conventional home mortgage loans. This finance option should only be used on a short-term basis to help borrowers establish or rebuild their credit history.
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