Five Reasons To Seek The Hard Money Loans
When one is in need of cash, they will have a variety of options, and one of the ways that one can get cash is by 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 reasons for one to make use of hard money loans.
One of the major benefits of California hard money loans is that they have fast approvals and thus an investor will have the chance to secure cash within a day or two after they have provided the lender with the needed documents. For one to secure financing from the private money lenders, they will have to convince the lender that the property has a good market value, and also the borrower will need to have at least 20% equity. 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.
There is the need to find a loan from the private money lenders when one needs to get finance for their project, due to the fact that one will get flexible repayment plan when repaying the case. 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. With banks, one will have to adapt to the payment plan developed by the bank, but with private lenders, you can have a payment plan developed that will suit you.
When you seek financing from the private money lenders, you won’t have to worry about a prepayment penalties. 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.
One of the major worries, when one is seeking to have a loan, is their credit history or credit score, but in the case of hard loans, your credit history attracts less emphasis. Approval relies on the value of the real estate investment rather than your credit score.