Securing lending as a commercial entity is a tricky process. While some lenders are picky with which clients they provide financing to, others are inflexible with their terms. Traditional banks seem to favor only certain businesses, leaving others to look for alternative funding programs. This increase in demand for loans has led to a surge in private money lenders across the country.
Private hard money lenders have become the go-to for many commercial businesses that require funds for real estate deals. Their affordable and versatile loans make it possible for businesses to continue with their plans.
Here are some reasons why you should partner with a hard money lender:
They have capital available
Since the business model of private money lenders depends on providing funds, they generally have the capital available to lend to a client. Banks, on the other hand, have to be careful with their lending ratio as they need to have a safety reserve at all times while providing other services as well.
There are a number of real estate loans on the market, like balloon loans and mortgages, these are very inflexible when it comes to their terms and conditions. Hard money loans aren’t as stringent with their requirements since they are controlled by fewer constraints. Hard money lender do undertake title searches, insurance, and escrows, but these steps also benefit the borrowers.
For every loan application, specific terms are drawn that factor in instructions and conditions for all the parties involved. Some lenders are willing to extend the payback period for up to 5 years.
Quick to provide funds
Hard money lenders are more open to providing funds to clients. Their business model is run differently and therefore they don’t make their money by investing in a CD or savings account. In order to make money they must lend money. This is one of the main reasons why it’s much quicker to get a loan with a hard money lender. They evaluate each deal independently and the loan application is signed off by one person, making the process quicker.
The interest rate stated varies from client to client, just as with traditional banks. The interest rate is determined depending on risk. Despite that, hard money loans tend to be cheaper than traditional loans, especially when a bank requires upfront fees.
If you’re in in Des Moines, IA and have your eyes on a lucrative project that you require immediate funds for, get in touch with a reliable hard money lender. Global Partners Capital Fund 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. They provide hard money loans to clients with poor credit as well. Call +1-800-514-7350 to speak with their agents.