Traditional lending institutions make loans a tedious process for clients, especially commercial clients. The paperwork required and additional processes make it time consuming, which is less than ideal when you need to close a real estate deal quickly. Traditional bank loans take months before the application is approved, even if a client has an excellent credit rating. Often, such loan applications are turned down despite the good cash flow and ROI on the property.
Therefore many commercial clients opt for the easier alternative – hard money loans.
Here are some reasons why hard money loans is the way to go for real estate investments:
Hard money loans are more lucrative
The stringent policies of traditional banks have led to the popularity in private lending across the country. Hard money loans, in particular, make for an excellent financing option for clients with non-traditional deals. Signing up for a hard money loan ends up being more lucrative due to the additional services and features offered by the lender.
While hard money loans generally have a payback period of a year, some lenders are willing to be flexible with the timeline of the loan. The typical underwriting processes is also done away with hard money loans. Lenders evaluate each deal independently.
Hard money lenders tend to have years of experience in the industry. They therefore have plenty of real estate knowledge, while also being well-versed with running a business. Hard money lenders are therefore quick to pick up on lucrative real estate deals. Their depth of knowledge in the field can end up helping you.
Hard money lenders are open to new ideas
Since clients who opt for hard money loans are often rejected from other financing opportunities, hard money lenders have their fair share of non-traditional loan applications. For them, the best deals are those that are unique. They are more willing to take on risk as they are not tied to any particular model, like banks.
Quick to respond to loan applications
Hard money lenders don’t undergo the same tedious processes that traditional banks opt for. They are quicker to accept or reject loan applications based on the project proposal submitted. They evaluate a project and forgo the minute details of the client. This works in favor of real estate deals and it allows you to close quickly.
If you’re looking to get in touch with a hard money lender in Fort Wayne IN, Global Partners Capital Fund can help you out. The company has been in the private lending business for over 3 decades now. Their services include private lending, financing for mergers and acquisitions, asset based lending and much more. Call +1-800-514-7350 to speak with their agents.