Hard money loans are obtainable for anyone with or without a strong financial statement or access to bank credit. This type of funding offers plenty of benefits and can be perfect for those who are looking for their next large investment. Whether you could or couldn’t get a loan or funding elsewhere, hard money loans provide a faster, more convenient, and more flexible way to take a successful first step toward your property investment.
So, as a property developer, it doesn’t matter where you stand in your financials; a hard money loan can be an easy yes for your funding choices.
Get Your Loan Faster
Property developers tend to move fast, and no one has time to wait for a bank to decide whether or not they will provide them with a loan. This extra time could lead to the developer losing the edge on the property, losing the deal, and, ultimately, losing money. A bank’s time frame will never match a property developer, and it can lead to a lost investment.
A hard money loan is provided by a private lender, already setting itself apart from a bank or large corporation. This allows the property developer to speak to the lender firsthand and establish communication and a timeline. Hard money lending can help speed up the process of getting the funds property developers need to purchase the home and get to work earning their money back.
Find a Convenient Loan
On the same side of the coin of speed, the convenience that a hard money loan can provide can give a property developer a way to cut out the middleman and get the loan without hassle or tedious steps.
The underwriting process is less rigorous than traditional loan options because more weight is given to the property’s value than the developer’s financials. Hard money lenders can depend on their own regulations, saving the developer energy and focusing on putting on toward the actual investment.
Get Access to Flexibility
Obtaining a loan should not be a cookie-cutter process. When a property developer goes to a hard money lender rather than a bank, they are given the flexibility that a bank could never offer. Hard money lenders can listen to negotiations and work to develop agreeable terms for both parties involved.
A hard money loan allows a property developer to negotiate terms such as fees, total amount, and scheduling. These terms might be behind a brick wall when dealing with other lenders.
Scenarios It Makes The Most Sense
There are many reasons that a property developer might benefit from a hard money loan.
- They require a quick close that a bank can not provide.
- They need a larger loan than a bank would be willing to offer.
- They don’t have the time or energy to deal with securing a loan from a bank.
- They have a great investment opportunity but no backing from the bank.
- They have multiple investment opportunities in the works.
A hard money loan can benefit any investor, no matter their financial statements. If you have further questions or want to obtain your own loan, contact the team at KC Investor Funding.