What is an asset based loan? An asset-based business line…
If you buy, rehabilitate, and sell properties in Tallahassee, Florida, new financing options are available. Our company has many loan programs designed specifically for investors wishing to increase their profits. Hard money loans offer quick funding to purchase properties with little to no money down. If you rehabilitate properties for resale, you’ll be able to receive funding for repairs and the purchase price. We offer flexible terms and programs for nearly every type of credit and financial scenario.
How Can a Hard Money Loan Help My Bottom Line?
A hard money loan is a temporary financing method that fronts the money for the purchase of a property and rehabilitation if necessary. Since these loans aren’t permanent, they have short terms usually lasting no longer than a year. Upon selling the property, the loan is repaid. You won’t have to miss out on any great opportunities due to a lack of resources or expedient service.
Hard money loans also focus on the quality of the collateral and its profitability potential. This means that credit blemishes, lack of liquid assets, and any other common scenarios investors often run into won’t be a major concern. We also have other loan programs available. There’s a solution for nearly every concern and budget.
While hard money loans provide a quick solution, the cost is something to consider when borrowing. Since these loans are a convenience product, the interest rates tend to be higher. Interest only, adjustable rates, and balloon payments are also utilized. This is a benefit to many borrowers who don’t want to pay any more than necessary while fixing and listing the property for sale.
How Do Hard Money Loans Compare with Traditional Investor and Bank Financing?
Hard money loans are a much faster and simpler way to borrow. With traditional and bank financing, a heavy emphasis is placed on the borrower’s financial history. These entities will want to see a stellar credit rating, stable income, employment, and more. For many investors, this simply isn’t possible due to the cyclical nature of the business. Our company has extensive experience in working with all types of borrowers and provides them with the best and most appropriate loan for their current situation.
Most banks and financing companies rely on government-backed loans for funding. These agencies strictly limit the types of property that are acceptable. Many of these loans also require mortgage insurance unless a sizable down payment is provided. These loans are beneficial and appropriate for owner-occupied and managed properties. Unfortunately, the government simply doesn’t provide funding for properties that are purchased to rehabilitate and sell for a profit.
With our hard money loans, the emphasis on the collateral means selecting a great property prior to applying. Any supporting information that will document the plans for the property are helpful. Past documentation regarding taxes, insurance, titles, and appraisals are also helpful to submit at the time of application. Although these documents will be updated during processing, any information that provides insight regarding potential concerns can greatly reduce the waiting time until funding. A home inspection also helps to identify any concern regarding structural damage, cosmetic concerns, and anything else that could delay your project.
How Do I Get Approved for a Hard Money Loan in Tallahassee, Florida?
Applying for a hard money loan is an easy process. We provide a loan inquiry form online that will ask you for some basic information regarding your request. From there, we’ll have one of our loan representatives review the information and contact you. They’ll go over the entire process and make a recommendation for the loan that would benefit you the most. After that, simply follow the directions from processing until settlement. Before you know it, you’ll have the funds you need to get started on your next big project. Get in touch with us and we’ll be happy to get you pre-approved, today!