Hard Money Loans Miami-Dade, Every Real Estate Investor’s Favorite Financing Tool!
Hidden high-interest rates and shady-looking lenders may have made money lending hard for you, but we at A to Z Capital, are here presenting you a different more trusting scenario. For those who don’t know, hard money loan is the kind of loan that is given to a borrower mainly based on the worth of the collateralized asset that is underlying. In hard money loans, asset based lenders focus chiefly on the value of the asset being used as collateral for the loan while traditional banks and lenders focus primarily on the credit and income of the person borrowed the loan.
Hard money loans are a more convenient short term option (one to three years, usually). Whereas, conventional loans are a long term procedure set on around 15-20 year terms. Hard money lenders act as a bridge to acquire a rehab or stabilize retail, commercial & official, industrial, joint family, or single family residential homes and apartments.
Why Hard Money Lenders Miami-Dade are a More Convenient Option When Compared With The Traditional Loans Provided by the Bank?
Bank loans may look easier and cheaper at first, but hard money loans are asset based loans that have multiple benefits over conventional bank loans. At A to Z Capital, we educate you and give you the full liberty to understand what hard money loans are actually. There are multiple reasons why financial advisors suggest borrowers go for private financing or a hard money loan over a more affordable-looking traditional procedure of financing:
Quick Funding – traditional banks offer sulking, more time taking process of acquiring loans. They usually take a minimum of 45 days to fund a mere one family residential loan, 60-90 days to finance a bigger commercial or official loan, and approximately 120 days to fund a developmental loan. On the contrary, a hard money loan is typically financed in a short span of time, which is maximum between 7 to 14 days.
Not entirely based on income or credit – traditional banks have completely relied on the borrower’s credit score, their ability to pay the debt, and their previous income. This why people with quality incomes like physicians, attorneys, lawyers are turned down by traditional banks for conventional lending because they have good incomes and credit scores, but they also have lots of debt. So, private lenders Miami-Dade stand a high ground for such people. We look at the value of your underlying asset in comparison with the amount of the loan against the borrower’s credit record or history.
At A to Z Capital, we base our capital decisions firmly on the LTV (loan to value) principle. We typically look for a ratio of 50% – 65% LTV in our loans. Which precisely means that we lend 65% out of the appraised value of the property to the person filing for the loan.
Property needs denting painting – conventional banks have really tough and conservative underwriting guidelines which don’t allow them to lend on properties needing any denting, painting or repairs. While private lenders happily loan on the property that either lacks cash flow or proper shingles in the ceiling. As long as the borrower has enough equity or more like ‘skin in the game’ private lenders are happy to lend them loans. For instance, banks rarely finance a loan secured by a property calling for physical fixtures and repairs; so borrowers are now left with hard lender’s money to buy and rehabilitate the property, and then settle the hard money loan with normal traditional financing.
Another example to consider here would be, if a commercial property has no tenants, a bank won’t loan the property until it is leased up. However, temporary financing is a godsend in such scenarios. For this, an exclusive lender will provide in the loan to the borrower to purchase the property and lease it up. Once the property is stabilized for a certain given period of time, a commercial lender will refinance the hard money loan with normal lending.
What interest rates are involved with the hard money lenders in Miami-Dade, FL?
The interest rate is determined by taking a look at the mixture of multiple factors, such as:
- borrower’s credit score & income
- condition of the property and location
- the ratio of loan to value
- borrower’s amount of cash equity in the property
At A to Z Capital, we offer the lowest rates that are easy-going with all our clients. Dial 561-609-6699 now to get further details according to your plan.
Are there any prepayment penalties with hard money loans?
Usually, hard money lenders here in Florida implement a 3 to 6 month minimum interest requirement. For instance, in case of a 6 month prepayment fee, if the borrower is able to repay the loan in 3 months, there would be a due interest of an additional 3 months. This condition is functioned so that the lender receives a little return for the time, stress, and allotment of its funds to some stranger. If the borrower repays the loan after the fixture of 6 months, then there will be no repayment penalty issues.
A to Z Capital is the ultimate hard money private lenders in Miami-Dade, and we offer the best payment procedures and terms for our clients!
hard money lenders Miami-Dade flFinding a hard money lender in Miami-Dade Florida for residential rehab, fix & flip, or investment point of view? Look no further, get in touch with us now at 561-609-6699, visit our office, or shoot us an email at firstname.lastname@example.org for more info. We will be more than happy to help you out with your capital financing.