Benefits of Private Hard Money Long-Term Permanent Loans
By G. David Lapin On June 15 2023
Private hard money long-term permanent loans offer several benefits
Flexibility: Private hard money lending is often more flexible than traditional lenders, such as banks, when it comes to loan terms and requirements. They can tailor loan structures to meet the specific needs of borrowers, including longer loan terms.
Quicker Approvals and Funding time: Private hard money lending typically has a streamlined approval process compared to traditional lenders. They focus more on the value of the underlying asset, such as real estate, rather than the borrower's creditworthiness. As a result, the approval and funding times to process for private hard money loans can be much quicker and efficient, allowing borrowers to seize investment opportunities promptly.
Access to Financing: Private hard money loans provide borrowers with an alternative source of financing, especially when they may not qualify for traditional loans due to credit issues, a lack of income documentation, or other reasons. These loans can be particularly beneficial for real estate investors, house flippers, and individuals with unique financial situations.
Asset-Based Lending: Private hard money lending specialists base their lending decisions primarily on the collateral provided by the borrower, such as real estate. This asset-based lending approach allows borrowers to secure loans based on the value of their assets rather than their credit history or income. This can be advantageous for borrowers who have valuable assets but may not meet the strict criteria of traditional lenders. Please keep in mind real estate experience is important.
Investment Opportunities: Private hard money loans enable borrowers to take advantage of investment opportunities that require quick financing. Whether it's acquiring real estate properties, funding renovations, or financing a new business venture, these loans offer the necessary capital to act swiftly and secure profitable ventures.
Repayment Flexibility: Private hard money lending often provide flexible repayment options tailored to the borrower's needs. This can include interest-only payments or longer loan terms, allowing borrowers to manage cash flow more effectively and potentially maximize their returns on investments.
Less Stringent Requirements: Traditional lenders typically have strict requirements and extensive documentation processes. Private hard money lending, on the other hand, may have more relaxed criteria, making it easier for borrowers to qualify for loans. This is particularly beneficial for self-employed individuals or those with unconventional income sources.
It's important to note that private hard money loans often come with higher interest rates and fees compared to traditional loans. Borrowers should carefully consider the cost of borrowing and their ability to repay the loan before proceeding. Exit stragedy is important part of a hard money loan.
For more information on our Hard Money Loans or Trust Deed Investments, call our office at 714.838.1474 ext. 102 or visit our:www.hanovermc.com