Purchasing Foreclosures? Hard Money Lenders Can Help!
One of the most common methods for the purchase of foreclosures is employing the help of hard money lenders. Both the Borrower and Lender benefit from such an arrangement, as the process is significantly shortened and the lending group can charge a premium interest rate.
Typically homes listed for foreclosure are in dire need of a number of repairs and are often in the process of being renovated. When a home is considered non-livable, traditional lenders will not get involved. If the plumbing is in shambles, appraisers take note. Should the Borrower need the funds to complete the numerous projects, a hard money lender maybe the only option. Commercial hard money can be used in the same manner. Shopping malls or retail parks are a prime example of such endeavors.
When closing a real estate deal, timing is everything so the streamlined decision process associated with hard money lending has its advantages. Hard money lenders can help you purchase a foreclosure quickly, adding value to their business model. The major advantage is that a Borrower has an answer within five to seven days, while a bank can an average take a minimum of 30 days to respond. Deals could be lost waiting on paperwork or answers.
As noted, the shortened process of hard money lending is partially due to the documentation process. Traditional lenders are highly regulated. Hard money lenders can make the investment decision personally and do not need a majority of the supporting documentation such as income verification. Borrowers then can spend the time on working the deal, not the documents. You are essentially taking on an investor that has written you a hard money loan.
Read full blog here: Hard money lenders los angeles
Comments (0)Subscribe to CommentsComment