Hard money loans are basically loans provided by non-traditional lenders. It is a form of creative financing wherein the lender approves a loan application based on the quick resale value of the property for which the loan is made. Unlike those given by banks, mortgage companies, and credit unions, HMLs are asset-based, meaning the lender doesn't rely on a borrower's credit score to verify a loan's eligibility.
As a real estate investor, it is important for you to secure funds for your investment properties as quickly as possible. HMLs can meet such a need because unlike traditional loans, they can be released the soonest possible time. With these loans, borrowers don't have to submit credentials and other documents detailing their financial capabilities, which could take a lot of time, since hard money lenders are not particularly concerned about that.
In addition, you don't have to deal with a processing team or panel, which is common when applying for bank loans. Thus, you can still obtain funds even if you have a bad credit history. As long as the investment property has a potential to attract a great deal, lenders of HMLs will provide you with the money you need.
If you plan on buying and fixing a single-family home for profit, hard money loans are indeed perfect for you. Some lenders of HMLs will agree to cover the repair cost of an investment property, allowing investors to maximize their budget and reduce their expenses. In addition, there are instances that lenders will provide 100% on some deals so you don't have to spend a single dollar when buying and refurbishing an investment property.
To learn more about the benefits of securing HMLs for a real estate investor, visit RehabHardMoney.com. The web site contains resources that can valuable to an ambitious and hardworking person like you.
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