What is an asset based loan? An asset-based business line…
If you’re a real estate investor in Pompano Beach, Florida, there’s new financing options to help you purchase and rehabilitate properties. You’ll never have to pass up another great opportunity due to credit, asset, or collateral concerns. Even if you’ve been turned down by banks and other finance companies, we can help. We have the perfect loan program available for nearly any scenario.
What is a Hard Money Loan?
A hard money loan provides you with the benefits of being able to purchase and rehabilitate investment properties. The loans are designed for quick resale and aren’t suitable for primary residences that are owner-occupied. The loans are structured so that you’ll make minimum or interest-only payments during the loan term. The term length is typically between one and five years.
Hard money loans are based on the value of the home, the improvements that need to be made, and the ultimate resale value of the property. This is determined by obtaining a recent or new appraisal that determines the value of the home and comparable sales in the area. A home inspection provides borrowers with better insight to any issues that the home might have. Structural damage, cracked foundations, and more can throw a wrench into any project. With a home inspection, you’ll be able to accurately assess the amount of work that needs to be done and a reasonable cost.
Since hard money loans are short in duration and are property focused, credit, income, and asset concerns are greatly reduced. This makes hard money loans a great option for investors with multiple projects that may have a complex financial situation.
How Do Hard Money Loans Compare to Bank and Traditional Mortgage Loans?
Traditional bank loans have their advantages. They offer a reasonable interest rate for those who intend to occupy a property or hold onto it as an investment. For those who “fix and flip” properties, this is an impractical solution. The loans take an excessive amount of processing and time for approval. Credit, income, assets, and the collateral provided are greatly scrutinized. It can take weeks or even months for these loans to be approved and funded. They’re also not intended for investors that don’t intend to keep and maintain the properties over an extended period. Hard money loans alleviate these concerns by only having to comply with local and federal guidelines. While hard money loans are subjected to regulatory compliance guidelines, the requirements that the government imposes are far less.
What is Required to Apply for a Hard Money Loan in Pompano Beach, Florida?
In order to apply for a hard money loan, you should review the property selected to ensure it’s a winning investment. You’ll want to check any recent appraisals, tax bills, and anything else that helps to establish the property’s current value. As previously mentioned, amounts of repairs should be documented through estimates, material costs, and any other costs involved with completing the project. Other financial documents from your business should also be for inspection. Providing as much information as possible upfront helps to move the process along.
How Do I Apply for a Hard Money Loan?
Applying for your hard money in Pompano Beach is easy. Our online application can be completed in less than five minutes. If you prefer, you can also reach out to us by telephone. We’ll review your request and get in touch with you to review the entire process and issue a pre-approval. Simply stay in touch with us and submit the documents requested in a timely manner. With days, you’ll be fully approved and have the funds needed to start your new project. See why so many investors in Pompano Beach count on us as their hard money loan lender of choice. Get in touch with us and we’ll help you, today!