Five Reasons To Seek The Hard Money Loans
When you are an investor, money issues will always face you, and one isn’t limited to where to find cash to finance their projects, including obtaining hard money loans. The hard money loans are financing that is done by private money lenders in California, and one will never be short of options when seeking for hard money loans since they are provided at attractive interest. There is the need for individuals seeking to make real estate investments from a given private loan lender to determine if the lender is reputable and reliable to provide them cash for their real estate investments. Here are some advantages of the hard money loans.
The number one reason why the hard money loans are the best option when one is out to seek finance for their real estate investment is the fact that it doesn’t take long to have the loans approved, unlike in the case of loans, since one can have their loan approved within a day or two after providing the lender the needed documents. For one to secure financing from the private money lenders, they will have to convince the lender that the property has a good market value, and also the borrower will need to have at least 20% equity. One of the major reasons why you should seek funds from the private money lenders rather seek a loan from a bank is the fact that private lenders will process your loan within a week and provide you the cash, but in the case of banks, it will take you a moon or more to secure the cash.
Another benefit that can motivate the investors seeking to get cash for real estate investments to find cash from private loan providers is the fact that they will have a flexible repayment plan. One can discuss with the loan provider to provide them a loan repayment plan that will be structured to suit them, but in the case of banks, one will not have been afforded such freedom. With banks, one will have to adapt to the payment plan developed by the bank, but with private lenders, you can have a payment plan developed that will suit you.
One will also not incur any prepayment penalties when they seek loans from the private money lenders. One has the chance to repay a loan that hasn’t reached the maturity date without attracting any penalty. Thus when one gets enough cash to clear the loan, they have the choice to clear the loan without the fear of getting penalized.
You do not have to worry about the credit history and the credit score when seeking hard money loans. Approval relies on the value of the real estate investment rather than your credit score.