Hard money loans simply means loan borrowed from private money lenders. Unlike banks and other money Lending institutions, this is where you can get quick money. This is actually the best type of loan for any business person. Wondering how? Well, the following are some of the benefits of using hard money loans:
No Prepayment Penalties
This is one of the great benefit of using hard money loans. Most of the private lenders do not charge prepayment penalties. If you are lucky to get the money before the maturation date, they are very okay with it. You will not be charged a penny. This is in contrast when it comes to bank loans. If you pay before the maturation date, you will be forced to pay prepayment penalties. This saves your money to some extent
Hard money loans also have flexible payments. What does this means? It simply means that you can discuss with your Hard Money Lender Los Angeles on how you will repay the money. This is very important because you can suggest the specific day that you are sure you will have the cash. But with banks, there is no room for negotiations. You have to pay as per the rules of the bank. And incase you delay you will be penalized without questions.
Few Requirements Are Needed
The amazing thing about hard money loans is that few requirements are needed. If you apply for this loans, the private lender will look for a few things. This includes, the value of your property in order to ensure that it is equal to the loan that you need. He/ she will also look for your ability to pay monthly payment and reasonable exit strategies. If this is okay, then you will get your loan without much struggling. Bank loans have many requirements that might delay the loan or even prevent you from getting the loan. So, hard money loans becomes your only option. Provided you meet the requirements, you will be considered.
They Provide Funding For Projects
This is the only place where you can get money to keep your projects going. It is a perfect idea for real estate investors. If you need money to purchase or renovate your property, private lenders will actually provide you with fix and flip loans. This short term loan will help you to repair your property and finally sell it. .Banks and other money lending institutions do not provide this type of loan. In simple terms, this is the only place where you can get short term loans. Banks only provide long term loans.
Quick Approval and Funding
Unlike other loans, hard money loans are approved and funded quickly. If you are in need of quick money because of any reasons, this is the loan you should go for. You don’t have to weight for a whole month in order to get the money, you can get it as quick as possible. Within five days you will have your money. What the money lender will do, is to check the worth of your properties and your ability to repay the loan. If everything is set, you can even receive your money within one day. It is actually a quick way to get money.
They Don’t Consider Your Credit Issues
Hard money lenders have no problems with your credit history. They don’t care whether you have a bad credit history. Whether you have debts in a million banks you can still get the loan. What they put into consideration is the value of you properties and your ability to repay the loan. If you meet their requirements, be sure of getting the loan
Using hard money loans has great benefits as we have seen. In case you have an emergency, using hard loans is the best. Hard loans also have flexible payments and few requirements are needed.you can also repay the loan any time you get money because there is no prepayment penalties. .