Getting to Know Hard Money
Hard Money is a type of loan which is secured by a real property. If you are in need of such a loan, you can more readily check at Arizona Private Lending. The loan security in hard money is by first mortgages on commercial or residential properties. With this type of loan, the decision is based strictly on the value of the property unlike in traditional lenders like banks that check the credit score and financials of the borrower.
Why Choose Hard Money Loan
The main reason why a borrower chooses Hard Money Loan is to raise funds quickly. Private Lenders such as Arizona Private Lending will help you with the lending procedures. If the borrower doesn’t have the patience or time to wait for a traditional lender, then his best option is the Hard Money loan. Loans on the commercial transaction can take more than 90 days and you have to do tedious paperwork. Another reason why a borrower chooses Hard Money Loan is that he doesn’t fit the traditional way of making a loan. For An example, a borrower who doesn’t have a solid two years of tax returns that declines the possibility of getting a bank loan, then Hard Money Loan is the best choice!
There’s No Need for Stellar Financials or Credits
Some experts agree that a person’s financial or credit score doesn’t reveal the complete story. And that maybe the reason why the private lenders don’t need them.
There’s a misconception that private lenders are loan sharks. The truth is private lenders are helping people when traditional loan didn’t work. It is true that the rate of private lenders is moderately higher than traditional loan but the borrower saves an substantial money in the process. There are situations wherein the borrower will lose substantial money if he doesn’t get quick funding for his business and that’s where private lending becomes a life savior.
Private Lenders Provide Quick Solutions
A private lender loans up to sixty percent on the value of the borrower’s property but it varies depending on the lender organizations. The good thing about private lenders is that you don’t need to satisfy the metrics that a traditional lender requires. The result is that the borrower is able to fund their business needs which traditional lenders can’t provide. Private lenders provide quick financing that can take only up to three days. Private Lenders can fix what traditional lenders can’t as they don’t have to follow any of traditional lending guidelines. The good thing with private lenders is that they are not bounded by various regulations compared to traditional lenders.
Hard Money Lenders Are the BestA
Hard Money Lenders are treated as “3rd Party” Private Lenders. They are considered to be the best because they are very reliable. Another thing that is good about Hard Money Lenders is that they have standardized fees, interest rates, loan terms, and costs.
Hard Money Lenders also provide Rehab Financing where they can help purchase and renovate a property and make it as a single loan.