There are a variety of funding solutions available for your business ventures, including microloans or short-term loans if you need money urgently. You can also take out large-scale loans to grow your firm, but every loan comes with its own set of terms and conditions.
If you’re looking for financing options to fund your real estate investments, hard money loans are the ideal option to go for. Here’s why they are the best choice for your real estate investments.
They Quickly Approve and Fund Your Applications
The speed with which a loan is granted and funded is one of the most significant features of hard money loans. It is possible to receive approval in as little as one day.
Only the property you’ll be investing in, adequate financial reserves to make monthly payments, your exit strategy, and the down payment is what a hard money lender is interested in. If you meet these criteria, you will be granted a loan.
You can get funding in around 3-5 days, much faster than the 30-plus days it takes a bank to fund your loan once you have approval.
There Are Fewer Prerequisites for Approval
In comparison to bank loans, hard money lenders impose fewer restrictions. A loan with fewer restrictions has a higher chance of approval.
Banks have a comprehensive list of standards that you must follow to be considered for financing, which increases the likelihood of your loan being denied.
Each year, the list of requirements becomes more extended, making loan applications even more challenging to navigate. Recent foreclosures, short sales, loan modifications, bankruptcies, bad credit ratings cause banks to be concerned and refuse to lend you money.
On the other hand, a private lender has no such restrictions, making loan approval hassle-free.
They Hardly Reject Loan Applications
You may be ineligible to apply for a bank loan for several reasons. Maybe there are issues with property’s water and electrical systems or its foundation, causing the bank to rule the property unfit for financing.
Banks are risk-averse lenders who will reject your loan application if there are even minor inconsistencies. If you don’t fulfill their stringent lending conditions, your application will be refused right away.
Hard money loans can come to your rescue at this time. They can assist you in investing in a property with challenges that prohibit it from qualifying for a standard bank loan if banks have refused your loan application.
If you’re looking for reliable commercial private money lenders, Commercial Private Equity can help you out. We’re leading hard money lenders in Atlanta and specialize in bridge, raw land, development, construction, bridge, and other specialized loans for commercial properties.
Contact us for more information about our financing options.