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Fast Funding - The Advantages of Hard Money Loans Business Articles | May 31 jordan 4 baratas , 2017

When it comes to the real estate industry in the Washington, DC metro area, time and money is the name of the game and in most cases, a home flipper will need financing – fast. With more and more developers and house flippers searching for financing options other than a bank, hard money loans have emerged as a viable option.



Often referred to as private money, these loans are a specialized financing tool jordan 13 españa , in which the loan is secured by a valuable asset, such as real estate. Considering the fact that some borrowers are finding it harder to get money from banks, either due to poor credit rating or lack of balance sheet history, many fix and flippers are opting for hard money loans. In the DC area, access to hard money loans in Virginia and Maryland are equally important.


In addition to offering flexible structure and no prepayment penalties, hard money loans in Maryland jordan 13 baratas , Virginia, and DC relieve the borrower from the hassles of extensive documentation and financial background review.


Here are the top five advantages of hard money loans:


1. Speed – While traditional lending entities like banks may take months to approve loans, hard money lenders, can approve and fund in as quick as 2 to 3 days. Hard money loans, in short, are easier to acquire than a bank loan and cut through the red tape.


2. Money matters – With hard money loans jordan 13 retro baratas , real estate investors can typically borrow a larger amount of money as compared to a bank loan. The reason behind this benefit comes from the fact that the loan amount is based on the collateral’s ARV, short for After Repair Value.


3. Fewer requirements – When compared to bank loans, hard money lenders have fewer qualification requirements – such as credit rating and balance sheet history. For many, fewer requirements and paperwork means a higher likelihood of loan approval.


4. Extended opportunities – Hard money loans provide new opportunities to real estate investors who want to invest in certain properties that conventional lenders won’t financing. It goes without