Hard Money Loans are Great Bank Alternatives
A hard money loan can be a great alternative to finance your real estate transaction. A hard money loan is a loan based on the equity in a home and not on the qualifications of the borrower based on income.
These loans are great alternatives to getting mortgage loans from banks, mortgage companies, or credit unions. They are usually funded by private funds or by investors. Because they are not regulated by the banks, they usually fund within 7-10 business days.
Less documentation required
These types of loans do not require very much documentation because they are regulated by private funds. They do not require the same documentation required by banks or mortgage companies. Hard money loans are not regulated by any entity and therefore have their own guidelines.
The investors that fund hard money loans determine what the interest rate and fees will be for their customers. Each interest rate and fee for a hard money loan is determined on a case by case basis depending on the real estate transaction.
Investors and Alternative Real Estate Funding
Most Real Estate Investors use these types of loans to fund their real estate transactions. Private loans will often also provide funds available to improve or rehabilitate real estate properties. This is one of the reasons real estate investors who need to repair real estate choose these types of loans.
Finding Private loans
You can find private loans by simply going online. There are many private loans available in many states. If you do not have a private lender in your state, you can go online to locate one that will fund your real estate loan in your state.
Private funding is usually for terms of less than a conventional mortgage company. Most mortgage companies and banks have mortgage loans for 30 or 40 years. Private funds are usually for shorter terms as they are often used as “bridge” loans needed to purchase a property quickly.
Private loans are the solution to many real estate financing issues. They are a wonderful way to fund your real estate transactions and are not hard to find. These are convenient loans to use if you need to purchase a home, fix it, and put it back on the market to sell for a profit. This is what real estate investors specialize in.
Private loans are available in every state. You can research them online and you will find companies that will offer you these services. It is a wonderful alternative to mortgage or bank loans if you need to fund your real estate transaction very quickly.
Consider a private loan for your next real estate transaction if you are an investor or buyer seeking to close a real estate transaction as soon as possible to fix and resell it for a profit. This is known as a “fix and flip”.
Private loans are also great if you have limited documentation. They do not require very much documentation for funding. This is because most of the qualifications for these loans will be based on the equity in the real estate and not on the borrower’s personal qualifications.
The terms for private loans are always negotiable and can be revised if needed. This is what makes private loans very attractive and a wonderful alternative to banks and mortgage companies.
The terms can be adjusted because there is no bank to regulate the guidelines for the terms. The terms are determined only by the private investors involved and therefore can be revised or changed as necessary to facilitate the funding of the real estate transaction.