The Benefits of Private Money Loans
Hard money loans are financing that's provided by the non-institutional lenders. There are actually a lot of hard money lenders who actually offers fast funding with good interest rates. To learn more about Private Money Loans, click california hard money loans
. The borrower should perform a thorough check with the reputation of the lender and the business and as you do your research, you will also find that hard money lenders will be able to provide a good advantage when it comes to funding real estate investment projects.
Much Faster Approvals
One of the benefit about hard money lenders is the fact that investors will be able to secure a pre-approval for just two days after submitting the documents that were requested by the lender. Hard money lenders actually focus if the assets comes with good market value and that the borrower equity is about 20%. The financing could take place for just less a week compared to normal loans that could take about a month or more. If you are going to inquire about hard money lenders, one of the questions that you should ask is about how fast they can fund you.
Payments are made Flexible
Through the private lenders, you can then acquire more freedom when it comes to creating a customized repayment plan. But this freedom is not present with big financial institutions. But you will instead need to accept the payment terms being set by the bank. However, with private lenders, you could talk with them and then end up with an agreeable repayment plan that you find suitable for you.
Few Requirements Needed
When you plan on applying for a loan from normal financial institutions, you will be expected to give the necessary requirements like your income history and experience and others more. The bank approvals sometimes can be stressful. To learn more about Private Money Loans, visit hard money loans california
. But with hard money lenders, you will not be burdened with various requirements. This is as long as you have high-value assets and also have at least about 20% equity stake, there's a good chance that you could qualify for the loan.
Prepayment Penalties are None
When you acquire a loan from an established bank, you are subjected to prepayment penalties when you pay off the loan before the maturation date. Most of the fix and flip lenders will not charge prepayment penalties, so if you ever have extra cash and decides to pay off the loan before its due date, you will be confident doing it without worrying about being penalized for it.
Credit History is Not an Issue
With private lenders, less emphasis are placed on your weak credit history. This in fact is because a private lender will be based with the loan approvals on the borrower equity, property value, etc. Meeting this criteria will give you a good chance of getting funded.