The Major Benefits That Come With 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. 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.
The number one reason why the hard money loans are the best option when one is out to seek finance for their real estate investment is the fact that it doesn’t take long to have the loans approved, unlike in the case of loans, since one can have their loan approved within a day or two after providing the lender the needed documents. If one has to secure a loan from the private money lenders, they will have to prove that the property has a good market value and also prove that they have at least 20% equity. One disadvantage of seeking financing from a bank is the fact that the loans from the banks might take a who month before getting approved and one getting the cash they need for their project, but in the case of hard money loans, one will get cash within a week.
Another benefit that comes with the California hard money loans is that they provide one the option to repay the loan flexibly. 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.
Hard money loans won’t attract prepayment penalties. 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. Approval relies on the value of the real estate investment rather than your credit score.