Are Hard Money Loans Worth It?
The rumors of hard money lenders being shady and having high hidden interest rates have been circulating for a long time now.
A few investors still fret when considering working with hard money lenders. However, with various states making licensing compulsory and putting strict regulations on hard money lenders, the situation is favorable now.
The advantages of hard money loans outweigh all the other conventional lending options available, proving to be highly rewarding for borrowers.
This blog will shine a light on the benefits you reap with hard money loans.
Your Loan Applications Are Approved Quickly
Banks and other traditional sources require a lot of documentation and reassurance. They’ll ask for your credit accounts details, income, business details, and whatnot to proceed with the approval.
If anything isn’t up to the mark, they’ll reject your application for a loan. If approved, there’s still a long way to go until you’re funded.
This pushes the investors to see the help of hard money lenders. Although they also keep the property as collateral before approving your loans, they aren’t interested in your credit. If the loan amount is equal to the value of your investment, you’ll get the loan.
They Process Loans Swiftly
A bank will take approximately 30 days to grant the loan, which is a large time frame for real estate investors as the property values fluctuate daily.
On the other hand, hard money loans are processed in no time compared to conventional bank loans. Therefore it proves to be an attractive alternative for investors as they can seal more investment contracts with hard money loans within the same timeframe.
Hard Money Loans Are Convenient
In today’s time, people ready to pay more to get good services. The low-interest loans provided by the banks might attract the borrowers, but the requirements of tax returns, bank statements, leases, and income documentation, ultimately drain them out.
Real estate investors, in particular, do not favor these time-consuming processes and gravitate towards hard money loans instead.
They might charge you slightly higher interest, but your loan will be approved quickly with no hassle of document collection and submission.
Are you looking for hard money loans for your next investment project? Commercial Private Equity is here to help you out.
From providing hard money loan consultation to closing your loans, we guide you through each step to make money lending a smooth process for you. We’re one of the most reputed private commercial real estate lenders in Atlanta, GA.
Contact us now for more information.
