Did you find an excellent commercial real estate opportunity in the market? The next step is to arrange funding to close the deal. If you opt for conventional financing like a bank loan, you might miss out on the opportunity owing to longer processing times. Moreover, if you don’t have an excellent credit score, your bank loan application is likely to be rejected.
Therefore, you should look for alternate financing solutions. A hard money loan is a great way to obtain quick financing on flexible terms. You must carefully present your application and business proposal to maximize the approval chances. Here are some important things that you should know:
Your initial application plays a significant role in the chances of hard money loan approvals. As best practice, you must draft a coherent and easily comprehendible professional loan application. Such an application thoroughly describes your business objectives and explain accounting logic.
Moreover, you should include assumptions, references, and sources, wherever necessary. It will make it easier for the lender to evaluate your loan application and increase the likelihood of a positive response.
Honesty And Transparency
Honesty and transparency are among the two traits most valued by hard money lenders. You mustn’t hide any information pertinent to your financial status and fully disclose your credit history.
Hard money lenders don’t evaluate applications based on creditworthiness and debt-to-income ratio. But they like to know if the applicant has gone through financial difficulties like bankruptcy or foreclosure before processing and approving loan applications.
Competence and Experience
If you have experience in real estate, you should outline that in your application. If you’re a first-time investor, you should add your qualifications or skills and explain how they can help you achieve success in the business venture.
Alternatively, you can talk about your partners who have relevant experience or qualifications that can come handy. I’ll help the lender appreciate the viability of your business plan and thus improve the odds of your loan application approval.
Private lenders that offer hard money loans look for professional and trustworthy clients. Unlike a conventional lender, the application process is somewhat simplified. Hard money lenders allow you to communicate directly with key personnel with decision-making power rather than wasting your time with a middle man with no authority.
Therefore, you should make the most out of the opportunity. Explain your business plan, show dedication, be transparent, and show confidence during the meeting. You must do your homework and gain a good understanding of your potential investment opportunity to earn their vote of confidence and get your hard money loan approved.
About Global Capital Partners Fund
Based in NYC, Global Capital Partners Fund is a leading asset-based lender that provides a range of financing solutions, including hard money loans. The company has been operating in the lending industry for over three decades, providing flexible financial plans to commercial investors. For more details about their services, call at +1-800-514-7350, or visit their website.