Beverly Hills Hard Money Lenders
Hard money loans are a great option for real estate investors who want to buy a home that can serve as an investment for them. This type of loan is great for people who are unable to qualify for a traditional mortgage loan. In general, there are many hard money lenders across the United States who allow people to borrow money to purchase a home. Many of them will also offer additional cash so that the borrower can make repairs to the new home.
One of the reasons why Beverly Hills hard money loans are attractive to people is that the monthly payments on them are interest-only and carry rates as low as 6 to 12 percent. The loans are made based on a property that is used as collateral to secure them. When a consumer needs a loan very quickly, hard money loans may be the only option. However, as with anything else, these loans come with specific advantages and disadvantages. It’s important to explore them if you are considering taking out a hard money loan.
What are the Pros of Beverly Hills Hard Money Loans?
There are certain advantages of hard money loans that can make them attractive to consumers who either cannot qualify for traditional mortgage loans or who need a loan extremely fast. These are the top reasons why you should consider getting a hard money loan:
• Approval and funding is fast: When you need money fast, a hard money loan can be very valuable. Generally, the main advantage of a hard money loan is that the approval process and funding is quick. In many instances, a person can be approved for a Beverly hills hard money loan on the same day as they apply. The lender looks into certain details, such as the property, the amount of equity or down payment that the borrower has available, the borrower’s experience in real estate, how the borrower will repay the loan and the borrower’s cash reserves. Overall, a prospective real estate investor can be approved for a hard money loan as long as long as the borrower fits the general guidelines.
• Hard money loans have fewer requirements: There are fewer requirements when it comes hard money loans, compared to traditional loans acquired from bank. Hard money lenders don’t look at things like credit score, etc, whereas traditional lenders do.
• Funding for projects other lenders won’t allow: Hard money loans are provided to borrowers for projects that traditional lenders wouldn’t even consider. One example is fix and flip loans, which let an investor purchase property while relying on short-term financing to quickly make repairs and then sell the property for profit.
What are the Cons of Beverly Hills Hard Money Loans?
Hard money loans also come with disadvantages. They include the following:
• Interest rates are higher: Hard money loans have higher interest rates than standard loans. This is to reward the lender for the risk he/she is taking on the project.
• They are short-term only: Most hard money loans have terms ranging one to two years. These loans are meant to be short-term.
• They require down payments or equity of at least 25 to 30 percent: Hard money lenders tend to overlook certain shortcomings of borrowers but require that the borrower have sufficient equity in the property. Generally, hard money lenders put an emphasis on collateral.
Overall, Beverly Hills hard money loans are best for individuals who need short-term loans. They are especially great for investors who fix and flip properties. Purchasing a property to make repairs and improvements and then selling it shortly after is a great reason to get a hard money loan.
At the end of the day, getting a hard money loan in Beverly Hills is a business decision. If you choose to get a hard money loan – you need to be sure you have a plan in place on how you’ll use the funds, and how you’ll repay the loan. The worst thing possible is to take a hard money loan, and then not be able to repay it. Due to the nature of hard money loans, the lender you work with will realistically take control of the property in order to recoup his/her investment. Remember – hard money loans are collateralized by the property itself. This means if you don’t repay the loan, you lose the property. Delancey Street consider itself a premier and trustworthy lender – and someone whose a partner. If you have more questions about hard money, and whether it’s right for you – we encourage you to speak to one of our representatives today.