Are you a real estate investor? You need to familiarize yourself with hard money lenders and hard money loans. These types of loans are quick to secure even if your credit score is not that great. And when you have a deal that you need to close quickly, you can’t afford to waste time waiting for a lender to approve your loan. The accessibility of a hard money loan is what makes such types of lenders attractive.
Hard Money Lenders
A hard money lender is an institution outside a credit union or traditional bank that lends to businesses and individuals. These lenders are a great option because they don’t come with many regulations for borrowers to adhere to. Hard money loans are particularly useful for property flippers or borrowers facing foreclosure.
Working With Hard Money Lenders
Hard money lenders are sort of different from traditional banks. For starters, they aren’t regulated like traditional financing institutions. That means their rules are a bit different. Aside from that, borrowers can negotiate with lenders on loan terms.
Benefits of Hard Money Lenders
The benefits of hard money lenders include the following:
Flexible: You can easily negotiate with money lenders about your lending terms
Speed: Securing a loan from a hard money lender is quick. The process can take only days or weeks before the money hits your account.
Collateral: The property the investor wants to secure acts as the collateral, with some hard money lenders accepting other types of assets, such as your retirement account
Convenient: No need to submit too many documents such as tax returns, income documentation, leases, etc.
How to Get a Hard Money Loan
Don’t let a rejection from a bank make you lose hope. A quick internet search will direct you to a hard money lender near you. Research a few lenders to ensure these are people you can trust. Check out their website and ensure it’s legitimate. Once you have that covered, arrange a meeting with the lenders. This is also the time to inquire if they specialize in the type of investment property you want to get.
Contact Scarlan Capital Group to learn more about hard money lenders and whether they are the right fit for you. Our financial experts look forward to educating you further.