Borrowers who have no credit, or bad credit, and have no documented source of income, will find it impossible to secure a regular loan. That's where commercial hard money lenders can help; they can give loans fast, regardless of a borrower's credit score or income potential.
There are a few reasons why you might need a commercial hard money loan; you may need to supplement a business venture, or require an investment in real estate. As long as you are aware of the risks involved with this kind of loan, it may be your only source of funds for the short term until you can make other arrangements, and so will prove to be of benefit to you in the long run.
These lenders are private lenders who are able to offer loans that are unconventional, also called high-risk loans, and so can be more flexible about who they offer them to. The loan is based on the value of your assets, so it won't matter what your credit rating is, or other eligibility criteria that conventional lenders would take into consideration. One thing to keep in mind, however, is that the interest on these loans is a lot higher.
If you need funds straight away, then this type of borrowing is a good option if you can secure money elsewhere later on. This option can solve your current financial dilemma; just remember to keep in mind the risks involved if you decide to go ahead with it. In particular, be sure to select your lender carefully so that you don't end up with a bad one.
The value of a borrower's real estate assets is used to calculate how much a lender will borrow them. This can be as much as 80% of their property value. Since credit scores and other financial information is not taken into account, the borrower can have access to a loan quickly - sometimes within two days or even less.
Remember that a good lender will not ask for any up front payment, and it pays to avoid going through a broker so you won't have to pay commissions. Before you commit yourself to any agreements in writing, make sure you have understood all terms and conditions, costs involved, when and how you will need to repay the loan, and what happens if you don't.
A good commercial hard money lender will work with a borrower's financial circumstance to offer them a loan that is right for their current needs. A person can safeguard their business investment this way by getting a loan as quickly as possible, even if they have a poor credit score, until they are able to secure funds from elsewhere.
There are a few reasons why you might need a commercial hard money loan; you may need to supplement a business venture, or require an investment in real estate. As long as you are aware of the risks involved with this kind of loan, it may be your only source of funds for the short term until you can make other arrangements, and so will prove to be of benefit to you in the long run.
These lenders are private lenders who are able to offer loans that are unconventional, also called high-risk loans, and so can be more flexible about who they offer them to. The loan is based on the value of your assets, so it won't matter what your credit rating is, or other eligibility criteria that conventional lenders would take into consideration. One thing to keep in mind, however, is that the interest on these loans is a lot higher.
If you need funds straight away, then this type of borrowing is a good option if you can secure money elsewhere later on. This option can solve your current financial dilemma; just remember to keep in mind the risks involved if you decide to go ahead with it. In particular, be sure to select your lender carefully so that you don't end up with a bad one.
The value of a borrower's real estate assets is used to calculate how much a lender will borrow them. This can be as much as 80% of their property value. Since credit scores and other financial information is not taken into account, the borrower can have access to a loan quickly - sometimes within two days or even less.
Remember that a good lender will not ask for any up front payment, and it pays to avoid going through a broker so you won't have to pay commissions. Before you commit yourself to any agreements in writing, make sure you have understood all terms and conditions, costs involved, when and how you will need to repay the loan, and what happens if you don't.
A good commercial hard money lender will work with a borrower's financial circumstance to offer them a loan that is right for their current needs. A person can safeguard their business investment this way by getting a loan as quickly as possible, even if they have a poor credit score, until they are able to secure funds from elsewhere.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Atlanta Hard Money Lending Investors, Georgia He suggests you check out the website iFund International.
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