Hard Money Loans: How Far How Safe?
Investors who are new to real estate may find the concept of hard money loans mythical or even dangerous. However, hard money lending is much more common than one would realize. As conventional money lenders and banks are stipulating stricter rules on lending money, hard money lenders are pouncing on the opportunity to lend to borrowers.
The reason why a real estate investor often looks up to these lenders is due to the fact that that they do not rely on the creditworthiness of the borrower. Instead, they look to the value of the property. Putting it simply, these loans are less dependent on credit score and revolve around assets because the lender would certainly want to make sure that if the borrower defaults, there will be sufficient equity in the property over and above the amount of the loan.
Another reason for borrowers to use money is rehab purchases. Let us say, you find a great property which can generate huge profit after renovation. And, for this you may want the loan fast because there is already a buyer for the house when it's done. The loan is available much quicker and without the hard and fast rules of a traditional loan.
So, are the loans really safe and advisable for a borrower? Now, such loans should really be considered loans of last resort. However, if you are unable to get a conventional loan from a bank, then unconventional money lenders are really the safest choice. You only need to know some facts that these types of loans are more expensive and often have more onerous terms than the conventional loans. After all, this type of money loan may be your solution if your credit is less than perfect. Of course, the interest rates are higher, but you can always try to act quickly and rehab your investment property so you can flip and get your profit.
The only thing to keep in mind when going for such loans is to use caution and know what you are getting into. Always check references of private money lenders. When it comes to private money lending, PB Financial Group Corp is the most trusted name in America. The company excellent reputation as a Hard Money / Private Money Lender has been built on their ability to provide fast financing solutions for borrowers who have come across financial challenges, and are in need of fast, creative financing solutions. As a direct Hard Money / Private Money Lender, PB Financial Group Corp is able to provide a fast decision on your loan application, which allows the clients to get their hard money loans funded quickly.
The reason why a real estate investor often looks up to these lenders is due to the fact that that they do not rely on the creditworthiness of the borrower. Instead, they look to the value of the property. Putting it simply, these loans are less dependent on credit score and revolve around assets because the lender would certainly want to make sure that if the borrower defaults, there will be sufficient equity in the property over and above the amount of the loan.
Another reason for borrowers to use money is rehab purchases. Let us say, you find a great property which can generate huge profit after renovation. And, for this you may want the loan fast because there is already a buyer for the house when it's done. The loan is available much quicker and without the hard and fast rules of a traditional loan.
So, are the loans really safe and advisable for a borrower? Now, such loans should really be considered loans of last resort. However, if you are unable to get a conventional loan from a bank, then unconventional money lenders are really the safest choice. You only need to know some facts that these types of loans are more expensive and often have more onerous terms than the conventional loans. After all, this type of money loan may be your solution if your credit is less than perfect. Of course, the interest rates are higher, but you can always try to act quickly and rehab your investment property so you can flip and get your profit.
The only thing to keep in mind when going for such loans is to use caution and know what you are getting into. Always check references of private money lenders. When it comes to private money lending, PB Financial Group Corp is the most trusted name in America. The company excellent reputation as a Hard Money / Private Money Lender has been built on their ability to provide fast financing solutions for borrowers who have come across financial challenges, and are in need of fast, creative financing solutions. As a direct Hard Money / Private Money Lender, PB Financial Group Corp is able to provide a fast decision on your loan application, which allows the clients to get their hard money loans funded quickly.
