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Finance - Hard Money Loans

Finance - Hard Money Loans rainingdeal.in

Finance - Hard Money Loans

Knowledge of finance is a vast learning and today I want to talk about hard money loan. Hard money loans is a specialized financing tool that is mostly used by the professional real estate investor. Knowledge about advantages of hard money loans is limited to a few veteran investors. If you are in real estate business, this is one way to bloom your business to next level, if used perfectly.

The biggest advantages of Hard money loans are as follows:


Swift and fast process-

The biggest advantage of hard money is that it is funded and approved with utmost swift and quick process. The hard moneylender considers the property, the amount of down payment, or the equity that he will get in the property, the borrower’s experience, and the strategy to be followed in case there is a loss and the cash or bank balance of the borrower to make the monthly loan payments. The fast speed with which funding takes place is commendable. There have been stances where funding takes place in just a day. If everything is in place and seems to be fine the loan is granted.

Requirements for hard money loans are limited-

The hard money lenders have a very few requirements as compared to bank loans. These requirements includes the borrower having sufficient equity in the property, ample cash to make monthly loan payments, reasonable exit strategy, and ample experience if required. Thus with few requirements the chances of loan getting approved is high. In case of banks the lengthy list of requirements that a borrower needs to qualify for getting finance makes the chances of finance approval very low. Also the complex and time consuming process makes it tough to get the process complete. Also, the banks have red flags where they don’t fund the borrower.

Hard money loan is for projects, which cannot be, financed elsewhere-

The hard money loans finance the projects that cannot be financed by other institutions or banks. It could be in case of fix and flip loan. The projects involves a real estate investor to purchase a property with short term loan so that the investor can quickly make the repairs and updates and then sell the property at increased cost. In this case the real estate investor will need loan for just 12 months or less and such short term loans don’t qualify with the banks and thus the purpose of loan from bank is not served. Even if the property has issues the banks will not finance it.

Associate home loan is a pioneer-

Associate home loan is a pioneer in the field of hard money loan provider and has been in the field of financing the real estate investors and helping them grow tremendously. Associates is a conforming and non-conforming mortgage brokerage firm, specializing in alternative lending resources and flexible underwriting guidelines. Associates was created to help those individuals to obtain mortgage financing who had struggled with problems such as bankruptcy, foreclosure, and loss of income due to circumstance beyond their control.
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