If you are a real estate investment professional looking for a fast way to fund you purchases, you need to consider hard money loans. Delancey Street is a premier, and recognized, Staten Island hard money lender. We focus on providing opportunities to real estate developers – who simply need funding – in order to jumpstart their dreams.
Who is the right candidate for a hard money loan?
Traditional lenders don’t like dealing with real estate developers. They consider developers a high risk. In contrast, Staten Island hard money lenders like Delancey Street love real estate developers. While you may not qualify for a conventional loan, rest assured we’re happy to work with you. If you’re on our website, you’re probably doing more research about hard money loans and how one can help you. It’s critical you educate yourself about what hard money loans are, why they are a great alternative to traditional lending, and how we can help you.
What Are Hard Money Loans?
Hard money loans are collateral-based loans, which means the hard money lender focuses primarily on your asset or equity in the property. The lender does not care about your credit score or financial history in making a lending decision. The greater the value of your asset, the less risk for the hard money lender and the higher likelihood you will receive the funds you need. Hard money lenders care a lot about what your business plan is. We want to know how you plan on using our funds, and what your objectives are.
Requirements For A Hard Money Loan
There are very few requirements to qualify for a hard money loan. Whether it’s a bridge loan, investment property loan, fix and flip loan, cash out refinance loan, or purchase loan, the requirements for approval are generally the same.
Unlike banks and other traditional lenders, hard money loans are streamlined and efficient, allowing you to get funding quickly. Hard money loans require few documents and paperwork. Many investors utilize hard money loans when they don’t want to wait for a lengthy approval process associated with traditional lenders.
Credit Doesn’t Matter
If you have ever gone through the loan process of a bank or other traditional lending institution, you know it can be a tedious and sometimes boring loan process. They want to review your credit record and ability to repay the loan. Credit score is not important with Staten Island hard money loans because the hard money lender is asking for collateral to securitize your loan. Hard money loans are great for people who may not necessarily have a lot of money in the bank, but have a great asset which is worth more than the loan itself.
LTV stands for loan to value, and it’s super important to hard money lenders. Virtually every hard money lender will ask you what your target LTV is. This one number tells so much about your project. Most hard money lenders prefer to lend at 30-60% LTV. Anything greater than that is risky, and forces hard money lenders to scrutinize your loan further. If your loan is higher than 60-70% LTV, you should be prepared to explain how you’ll repay it – and lay out a concrete business plan. It is not uncommon for lenders to sometimes ask for additional assets in order to secure the loan.