Five Reasons To Seek 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. The hard money loans are funds that one obtains from the California private money lenders, and when you need quick financing for your project, you will never be limited with the number of options that you will have. When seeking private loan lenders, there is the need to find out the reputation of the lender when you need finance for your real estate investment project. Here are some of the reasons why one needs to utilize hard money loans California when making investments.
The basic reason why investors choose to utilize the first money loans when they need to enhance their investments rather than seek bank loans is the fact that they will get fast approvals, which helps them get approval within a day or two when they provide the necessary documents. When looking to secure such a loan, the lender checks if the property has a good market value and also determines if the borrower equity is at 20% or above. 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.
There is the need to find a loan from the private money lenders when one needs to get finance for their project, due to the fact that one will get flexible repayment plan when repaying the case. 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. In the case of banks, one will have to stick to the payment plan developed by the bank, but in the case of private lenders, one will have a customized repayment schedule.
When you seek financing from the private money lenders, you won’t have to worry about a prepayment penalties. With the hard money loans, you will attract zero penalties when you decide to repay the loan before the maturity date. Thus when one gets enough cash to clear the loan, they have the choice to clear the loan without the fear of getting penalized.
Credit history and credit score, which are major worries when one seeks a loan aren’t a major issue in the case of hard money loans. Loan approval is dependent on the value of the property rather than credit rating.