Hard money lenders have changed the way people are acquiring loans. This is because more people are opting for the hard money loans instead of bank loans. Hard money loans usually have a higher interest but this has not made people deviate from the hard money loans. You are guaranteed of getting hard money loans from private companies and money lenders. This money can go a great way in making sure that you are in a position of conducting your business. For instance you may want to construct a business building but you do not have enough capital. Hard money loan will come in handy and allow you to finish the construction and rent it to other people. This article focuses on the benefits of choosing hard money loans.
Unlike banks which require you to have solid history of borrowing and paying backs loans, hard money will only focus on the asset that you provide them as collaterals. This means that banks will only give you a loan if they are sure that you have a job and credit score well enough for you to pay back the money. Hard money lenders on the other hand will give you a loan based on your property value. It is also important to note that with hard money loans, you are guaranteed of getting up to eighty percentage worth of your asset. This simply means that hard money loans will give you more money to conduct your business than banks. It is therefore recommended that you consider hard money loans due to the fact that getting a loan is much easier without the need of having a borrowing history with the bank.
Banks usually offer their clients with stressful situations when they are applying for loans. This is however not the case for hard money loans. You will not be required to wait for a longer period of time before your loans is approved. Loan approval usually takes up to forty-five days and you are given your loan. This is very convenient because you will not stop your projects for long. In fact you may even apply for the hard money loan early in advance so that you are in a better position of finish your projects early. The process is therefore very easy and flexible and allows you to conduct your business without any difficulties unlike bank loans which may take many months to be approved.
It is also important to note that hard money lenders usually have certain programs that are suitable to your needs. You may want a quick loan without having to do much paperwork and therefore hard moneylenders will offer you a no or low document program. This program allows you to secure a loan without having the need to of a lot of paperwork. Terms and conditions also vary depending on your needs and specifications of the loan. You may be required to pace your property as collateral or sometimes your financial documentations are used. This will however depend on what you prefer to be used as collateral.