Do you
prefer private money lending / commercial loans? If yes, have you gone through
all the terms and conditions posted by your lender? If yes, do you agree with
them? These are all the questions that we here ask you. Once you know these
answers, you're probably good to go with hard money real estate loans.
However,
we are here for something more. In this article, we will try to impart as much
knowledge by interesting some doubts people have had before. After all, you
learn from previous experiences, and that's what we want to help you with. So,
let's start with the most common questions and their most demanding solutions.
The frequently asked questions
● What property types are suitable for hard money loans?
If you
are boring for Real-estate Investments, any type of property will do. Whether
it is commercial land, industrial land, family residents or any single
occupancy residence, everything will work as collateral security for the loan.
It just has to be more than the amount borrowed.
There
are some special rules and regulations under which lenders do not give you
loans for owner-occupied residential properties. It's all due to the increased
risk of repayment. So, be there if you have something like that in mind.
● For whom are hard money loans the most suitable?
If we
talk in general, all the Real estate Investors need something quick and of the
desired amount. Hard money loans do the same for you. You get your amount
quickly sanctioned by the lender. It's transferred to your account within a
week. So, you can say that hard money
loans are suitable for all Real estate Investors. Quick decision-making
adds to the return on investment further.
All the
other options will take time to get your loan sanctioned. Also, conventional
financing has never been suitable for quick investors.
● Is your credit score considered in hard money loans?
To be
precise, your credit score doesn't get considered while sanctioning your hard
money loan. It's because your property in question will work as collateral
security. When the lender sees a good return on investment, he grants you the
loan. It's as simple as that. Your credit score doesn't have anything to do
with the opportunity you have recognized. So, for all those investors who don't
have an exceptional credit report, rather than looking for commercial bank
loans, go for hard money loans near you.
● What is the interest rate charged by a hard money lender?
Interest
rates in hard money lending usually are higher than usual. However, we cannot
give you a precise amount. It always varies from lender to lender. Whether you
have good relations with him, whether your investment has higher expected
return etc. Everything comes under deciding a particular rate. If you want an
idea, you can expect anything between 10 to 18%. Still, don't worry about it.
You can always improve your lawn opportunity to better hard money lenders. They
have experience in recognizing the investment opportunity.
By
answering these four questions, most of your doubts should be clarified. If you
have anything specific, you can always reach out to us on the official website.
