A hard money loan is a financing being provided by a non-institutional lender. There are in fact many hard money lenders that are offering fast funding with good interest rates.
The borrower needs to do a thorough check with the reputation of the lender and the business and as you implement your research, you will be able to find that hard money lenders are able to give you a great advantage when it comes to funding a real estate investment project.
Much Faster Approvals
One of the benefit about hard money lenders is the fact that investors will be able to secure a pre-approval for just two days after submitting the documents that were requested by the lender. Learn more about Private Money Loans at private money lender california. The hard money lender places their focus whether their assets comes with good market value and that the borrower equity is about 20%. The financing could take place for just less a week compared to normal loans that could take about a month or more. If you are going to inquire about hard money lenders, one of the questions that you should ask is about how fast they can fund you.
Payments are made Flexible
With a private lender, you could get more freedom when it comes to creating customized repayment plans. But this freedom is not present with big financial institutions. But you will instead need to accept the payment terms being set by the bank. But through private lenders, you will be able to talk with them and end with an agreeable repayment plan which you think is suitable for you.
Few Requirements Needed
If you are going to apply for a loan from a normal financial institutions, you will be expected to provide hard-set requirements such as your income history and experience and a whole others more. Get more info about Private Money Loans at california hard money loans. It’s no secret that a bank approval can be stressful. But with hard money lenders, you will not be burdened with various requirements. This would be as long as you have high-value assets that has at least 20% equity stake, there are good chances that you will be able to qualify with the loan.
No Prepayment Penalties
When you acquire a loan from an established bank, you are subjected to prepayment penalties when you pay off the loan before the maturation date. Most fix and flip lenders doesn’t charge prepayment penalties, so when you have an extra cash and you decide to pay off the loan before the due date, you will surely be confident to do it without having to worry of being penalized.
Credit History is Not an Issue
Through private lenders, there’s less emphasis placed with your weak credit history. This is because a private lender will base a loan approval on property value, borrower equity, etc. Meeting this criteria will give you a good chance of getting funded.