Benefits of Consulting Hard Money Lender in South Florida
Hard money loans that you can get from hard money lenders in Florida are basically short term financing tools that are secured by the real estate. Instead of getting funded by traditional lenders, such credit unions or banks, hard money loans are offered by private entities. The terms associated with these loans are often around twelve months. However, loan term could be stretched up to two to five years.
The amount that you can get in the form of hard money loans is mainly based upon the subject property’s value. This property can either be the one that you already own and planning to utilize it as security, or it might be the real estate that you are currently trying to acquire. It does mean that hard money loans are fundamentally gained on the basis of concerned property’s value and not on the credit score of borrower.
If you can’t get traditional financing because of a recent short sale or foreclosure, you would still be able to obtain hard money loans. The only thing you have to ensure is that the property you are planning on to utilize as collateral has adequate equity.
You can get hard money loans for virtually all kinds of properties, including industrial properties, land, commercial properties, single-unit residential properties, and multi-unit residential properties. Some significant benefits of consulting hard money lenders in South Florida are discussed below.
Fast Approvals of Loan and Quick Funding
The process that is involved in applying for unconventional hard money loans is unbelievably straightforward and effortless. In majority of cases, you will only have to fill in your basic information in a regular loan application. You might be able to obtain conditional approval of lender merely after a short conversation.
Now compare this swift procedure with the innumerable pages that traditional banks need you to read and fill out. In addition to it, once you finally submit your loan application to the bank, it may take weeks or months until you receive their response, let alone the approval. During that period the pertinent property is likely to be snatched by any other investment.
On the contrary, once your hard money loan gets approved, you will most probably receive funds within one week. Some highly regarded lenders of hard money can even provide you with funds in 3 to 5 days. Getting cash for your real estate investment simply could not be faster than this.
Hard Money Financing Makes an Investor’s Offer Much Stronger
Being an investor, when you bring the option of hard money financing on table, your offer becomes much more appealing and stronger. It is particularly handy in those scenarios in which a real estate has various offers from those potential buyers who are back by traditional bank loans. In such situations, offers with hard money loans clearly stand out.
The biggest reason behind it is that conventional financial institutes, such as banks and credit unions, have a bad reputation for retracting financing at the last moment. Those cases are not rare in which banks pull back during the escrow, which either jeopardizes the whole deal or kills it altogether.
You will be glad to know that a reliable hard money lender in Florida will never pull funds or back off on the basis of senseless, arbitrary reasons. It makes them a much more dependable financing source as compared to traditional lenders.