Five Reasons To Seek The Hard Money Loans
When you are an investor, money issues will always face you, and one isn’t limited to where to find cash to finance their projects, including obtaining hard money loans. The hard money loans are financing that is done by private money lenders in California, and one will never be short of options when seeking for hard money loans since they are provided at attractive interest. There is the need for individuals seeking to make real estate investments from a given private loan lender to determine if the lender is reputable and reliable to provide them cash for their real estate investments. 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. Unlike in the case of normal loans which take a month or even more, hard money loans provides you the case within a week, and one needs to inquire when the private money lenders provide the cash when seeking financing.
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.
One will also not incur any prepayment penalties when they seek loans from the private money lenders. With the hard money loans, you will attract zero penalties when you decide to repay the loan before the maturity date. 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. Loan approval is dependent on the value of the property rather than credit rating.