Behind every person’s dream is the desire to strike it rich. Yet nothing comes on a silver platter. People must work smart to achieve their lifelong dreams and ambitions. But this only happens when one draws a careful plan and gets funding at the opportune moment to turn the dream into reality. This is why the choice of a hard money lending service matters. A borrower desires to work with a lender who will offer the required amount of money at the desired moment as this gives the investor opportunity to strike a favorable deal at the right time.
Although different lenders have set rules and principles that guide their activities or transactions, at times borrowers who have been consistent in repayment have rules bent in their favor. As it is, most hard money lending offers have their borrowing based on value of property. This can be property clients intend to buy or those that they already own but wish to use as collateral.
Unlike traditional lenders that consider a borrower’s credit score before extending credit, hard money lending to investors is mostly pegged on an individual’s property value. This basically means that a borrower who has had a short sale or foreclosure can still get hard money loan in case the property used as security has sufficient equity. So basically, a bank can close its doors on a borrower yet a hard money lender say it is possible to extend credit to someone.
Hard money loans can be given on various types of property including commercial premises, land, residential structures, industrial property and many more. Of course this does not rule out the fact that some hard money lenders specialize only on one type of property. For example, they may deal in residential and not land or industrial property. In this case, it is important to ask a lender the type of loan dealt in first to avoid complications or disappointments.
Most hard money lenders often shy off from lending owners of residential property because lots of restrictions are attached to them. However, there are those lenders who are willing to walk through the rules with a client and if they confirm there is the likelihood of repayment without any hitch, they grant a loan.
While hard money loans are the best to strike timely deals, they are not the best under all circumstances because of their high interest rates. However, an individual with no option after conventional lenders have closed doors on their face is a good candidate for these kinds of loans. They are also ideal for investors in real estate as the lender offers funding immediately. In a number of times, hard money loans are offered in a week or less, making them ideal for a buyer of property who must act fast.
There are no fixed interest rates for different money lenders as this largely depends on regions. Certain states have lowered rates while others charge highly. An investor must therefore look at the rates charged by various lenders to strike the best deal available. Before settling on a given lender, it is imperative to do plenty of research.