The Major Benefits That Come With The Hard Money Loans
When you are an investor, money issues will always face you, and one isn’t limited to where to find cash to finance their projects, including obtaining hard money loans. Hard money loans refer to the funding that is done by the private money lenders California, and when out to seek financing, one will never be short of options. When seeking private loan lenders, there is the need to find out the reputation of the lender when you need finance for your real estate investment project. Here are some advantages of the hard money loans.
The basic reason why investors choose to utilize the first money loans when they need to enhance their investments rather than seek bank loans is the fact that they will get fast approvals, which helps them get approval within a day or two when they provide the necessary documents. When looking to secure such a loan, the lender checks if the property has a good market value and also determines if the borrower equity is at 20% or above. One of the major reasons why you should seek funds from the private money lenders rather seek a loan from a bank is the fact that private lenders will process your loan within a week and provide you the cash, but in the case of banks, it will take you a moon or more to secure the cash.
Another benefit that comes with the California hard money loans is that they provide one the option to repay the loan flexibly. One can discuss with the loan provider to provide them a loan repayment plan that will be structured to suit them, but in the case of banks, one will not have been afforded such freedom. In the case of banks, one will have to stick to the payment plan developed by the bank, but in the case of private lenders, one will have a customized repayment schedule.
One will also not incur any prepayment penalties when they seek loans from the private money lenders. One has the chance to repay a loan that hasn’t reached the maturity date without attracting any penalty. When you get money that is enough to clear the loan, it is easier in the case of hard money loans.
Credit history and credit score, which are major worries when one seeks a loan aren’t a major issue in the case of hard money loans. The loan is approved based on the property value, and thus individuals with poor credit score can meet the set criteria and qualify for a loan.