Those who are looking for a commercial loan may wish to check into a hard money loan. Hard money loans require no credit check, give you a high loan-to-value ratio and allow you to rehab, flip or refinance properties to help you build equity faster. The best part is that loan applications can be processed quickly to let you move fast on investments that make sense for you.
You May Not Have $200,000 or More Just Laying Around
A hard money loan can help you make moves even you don’t have the money in the bank to purchase a property. If you don’t have good credit and/or you are going to flip the home quickly, a bank may not approve a mortgage application. With a hard money lender, you get the money and buy the property with few questions asked. You then sell the property or refinance the loan as soon as possible to either repay the loan or convert it into a more traditional mortgage.
Mortgage Applications Can Take Awhile To Process
If you are able to get a mortgage, it can take weeks or months to process. You may also have to answer a lot of questions regarding how you are going to use the property and document where the money for your down payment is coming from. Those who don’t have 20 percent down may have to opt for a government-backed loan, which means that you aren’t going to be able to sell the property before 12 months have passed. With a hard money lender, you are able to do whatever you want with your property.
Get A Loan Based On The Value Of The Property After Repairs
You may be able to secure a loan based on its value after repairs have been made. This can help you gain access to more money upfront, which may make it possible to both purchase and rehab a property without having to spend any of your own money. For investors, having the ability to leverage a hard money loan may make it easier to purchase multiple properties and diversify their portfolio.
A hard money lender may be able to help anyone become a real estate investor. Even if you don’t have great credit, you can get a hard money loan, buy the property you want and make money on your schedule. This may offer individuals the ability to gain financial independence and security both now and in the future.