Las Vegas Hard Money Lenders
Getting a loan from a traditional lender can be a huge pain, particularly when you have a poor credit history. With a very low credit score, it could take you weeks or even months to be approved for a loan. Las Vegas Hard money lenders, on the other hand, consider the collateral you are giving up rather than your ability to pay the loan back. Hard money loans are usually intended to help real estate investor with buying a new property or land. In the event you neglect to pay back the money lent to you, the the private lender who gave you the money can seize the collateral and sell it to receive their funds.
Las Vegas hard money loans are most suitable and valuable to investors who want to renovate or improve a property property before selling it at a higher cost. The investors generate an ROI and repay the borrowed cash within a short period of time.
Las VegasHard money lenders are not worried about your credit rating. Hard money lenders are more worried about the security and will process your loan fast if your collateral justifies the loan. It’s important to note that hard money lenders aren’t necessarily interested in taking possession of your property. They’re fast because they spend less time verifying your income, bank statement, and other specifics. They only worry about the potential value of your property.
Unlike traditional loans,Las Vegas hard money loans agreements are flexible. Instead of dealing with a huge corporation, you will be talking to an individual who’s willing to help you design the best repayment program. They don’t follow or set standardized guidelines when setting up your loan repayment schedule.
When it comes to borrowing a Las Vegas hard money loan, we are focused on your collateral. If you want to invest a hard money loan – we typically lend up to 60-70% loan to value of the collateral. In case you have other assets to put up as collateral, we are happy to consider their worth before approving your loan.
If you have any issues with your credit history, then it won’t be that important. Most lenders, including Delancey Street – never look at your credit history. In terms of loan-to-value ratios, hard money lenders keep lend at about 50 and 70 percent. This allows a hard money lender to hedge some of the risk to the real estate investor and to ensure the investor will complete the project.
It is possible to apply and receive a Las Vegas hard money loan in a matter of 1-2 weeks. This is valuable, especially for borrowers who need to purchase a property fast. Most sellers won’t wait long for potential buyers to get their loan approved. Sellers have one motive: sell their property. They will do everything possible to sell their property as soon as possible.
Cons of Las Vegas Hard Money Loans
Contrary to traditional loans where you can take longer to repay them, hard money loans are made as a short term lending tool. This usually means that you need to repay the loan in the shortest time possible. Otherwise the lender can take possession of the property you put up as collateral. Remember, hard money lenders lend you money because they know if you default on the loan they can take ownership of your property and liquidate it.
Compared to traditional loans, hard money loans tend to be more expensive. In addition to the loan origination fee, you will also pay servicing and closing expenses. If you take a hard money loan on a mortgage, it can cost you 10% more than it might have on the standard loans. Needless to say, hard money loans are considerably convenient.
The interest rate of hard money loans can also be high because creditors are facing higher risks when lending you the loan. The interest rates usually range between 9 and 14 percent.
Before giving you a hard money loan, lenders want to see you put a down payment of up to 25-30 percent on the project. This is an incentive to motivate you to complete the project. If you believe a hard money loan is right for you, we encourage you to contact us. We have experience handling tough residential and commercial real estate projects all over Las Vegas. Regardless of how tough your project is, we can help you. We use creative financing to help you get the results you need.