If you want to be a real estate investor today there is an advantage to having a good relationship with hardmoney lenders. Especially in today’s market great deals come up quickly and to be able to take advantage of a good deal when it becomes available you will need a good source for available funds. Bank loans are very strict today and it may not be possible to get quick financing from conventional financing. Hardmoney lenders are available to provide financing to the real estate investor when they need financial assistance to take advantage of opportunities that come up quickly.
Private money lenders offer loans that are considered non-traditional and are called hard money personal loans. For the real estate investor, working with hardmoney lenders who offer a hard money rehab loan means that both parties will make money from the properties that they find. The lender will base the loan application on the potential of the property after it is repaired. Their criteria is asset based and when the real estate investor finds a property that they can rehab and turn a quick profit the hard money mortgage loans will give them the opportunity to take advantage of the property to make a quick profit.
Another advantage that the hard money mortgage loan holds for the real estate investor is that credit checks are not required being that the criteria for the loan in based on the rehab value of the property. If the investor has less than perfect credit it is still possible to get a loan from the lender. It is also not necessary for the borrower to fill out piles of paperwork, produce endless credentials or any other types of financial proof of stability. The property speaks for itself.
Hardmoney lenders are much easier to deal with than conventional lenders or bank officers. After flipping a couple properties it is possible to build a good working relationship with the lenders making the funding even easier. The private lender is just that and there is no necessity to deal with a panel of loan processors or a loan team just to obtain a simple mortgage. The loan offer comes quickly and makes all the difference when the real estate investor is trying to take advantage of a great deal that comes along. Instead of waiting weeks for an application approval it will only take days. If you are looking for a private lender your fellow investors will probably know a couple good private lenders who will be willing to work with you.