{abl1} Hard Money Loans | Delancey Street
By | Comment

{abl1} Hard Money Loans

{What {differentiates|distinguishes} {states} hard money lenders from {traditional|normal|regular} lenders?|{How is a hard money lender|What makes a hard money lender} different from a {regular|traditional|conventional} lender}

The {main difference|biggest difference|most important difference|critical difference} between {banks|traditional lenders} and  hard money lenders is {the fact|that} hard money lenders are asset {based|centric} lenders. They {focus|look at|entirely revolve their decision based on} on the {collateral|asset} associated with the {loan|hard money loan|funding request|by the potential borrower|by the person requesting the funds|by the person asking for the loan}. {In contrast|But}, traditional {banks|lenders} {focus|are fixated|hone in} on {credit|your credit|the borrowers credit} and {cash flow|cash in hand|liquidity|how much cash the borrower has|how much money the potential borrower has|how much cash on hand the real estate investor has|how much money the real estate investor has}. {It’s|It is} {super important|critical|very important} to remember hard money loans {are not|aren’t} {good|great} for the long {term|run}. The {purpose|objective} of a hard money loan is to be a {short term|bridge} loan that {gets you|which helps you get} the {property|investment property|real estate|home|commercial property|asset} {you’re|you are} {trying|attempting} to {purchase|buy|acquisition}. Hard money lenders focus on {short term |6-24 month term}loans that {reap|generate|get them} {high profits|a significant ROI|a great ROI|greater ROI than leaving the money in the bank}. If you {fail|are unable} to {repay the loan|repay the hard money loan|repay the loan you took|pay the lender back|pay the hard money lender back}, {a hard money lender|then the hard money lender |then the lender|then the company you borrowed from} can {foreclose on your property|take possession of your property|repossess your property|take over your property} {in order|to be able} to {repay|settle} his/her loan.


{Why shouldn’t you get a hard money loan?|Why should you not you get a hard money loan?|why is a hard money loan a bad idea?|What are some negative of hard money|When is hard money a bad idea|Why is hard money a potentially terrible idea}

{There are many reasons|There’s plenty of reasons|There’s some really important reasons} reasons why a hard money loan is a {bad|terrible} idea. For {example|instance}, hard money lenders {often charge higher|ask for higher|look for higher} {interest rates|rates of interest}. This is {due to|because of} the fact {lenders|hard money lenders|hard money companies} think {they are|they’re} taking {huge|substantial} risks by lending on an investment property – and {want|wish} to be {compensated|reimbursed} {accordingly|according to the level of risk|at a higher rate than what a bank would charge}. High interest rates make hard money loans {unattractive|unaffordable|economically toxic} for some {types|kinds} of deals. {In addition|Moreover}, hard money lenders have {shorter terms|much shorter terms|shorter loan terms} than {traditional|conventional} lenders – {which|that} also makes them unattractive. {Institutional|Traditional} lender {offer|provide} 30 year {terms|periods} but {hard money|private money} lenders offer only 1-3 year {terms|loan terms}.


{When’s a good time to consider getting a hard money loan|When should you get a {states} hard money loan|When should you think about getting a hard money|When is the right moment for a hard money loan}

{Hard money|Private money} loans {are used|serve} as {investment tools|funding tools} by investors. {They are useful in a few situations|Here are some examples where they are helpful|Here are some examples where hard money is good|Here are some situations where a hard money loan is a great idea}, such as:

{Unable|Not able} to {get|find} financing elsewhere. Funding real estate investments is {tricky|complicated|complex}. Traditional mortgages are {difficult|tough} to {get|acquire} under normal situations. Banks are {very|extremely} {cautious|careful} of {making loans|extending a loan} for {investments|purposes of real estate investments|real estate investments}, {as opposed to|instead of} loans for {residences|primary residences}. {As a result|Because of this}, if you’re looking for investment {funds|capital} – {then get a hard money loan|then you’ll probably have to get a hard money loan|then you’ll probably have to get a loan from a hard money lender}.

{You have|You’ve got} a {poor credit history|bad credit |bad credit score|poor credit score|poor credit}. Hard money loans are based off the collateral of {the|their} investment, not your ability to repay. Loans made to {consumers|customers} – as opposed to {hard money lenders|private money lenders} – {are based off your ability to repay the loan|revolve around how likely it is you will repay the loan|are centered around whether you’ll be able to repay the loan or not}. This means {if|in case} {you have|you’ve got} a {poor|bad} credit history or no {stable|steady} income – then you {might|may} not get approved for {a loan|financing}. You need {money|funding|capital}. {Hard money loans|Private money loans} are great so you can get money ASAP. {Traditional|Conventional} loans take time. Hard money is {very|extremely} fast. If you {need|will need} to capitalize on {an opportunity|a chance} immediately, then {you can|it is possible to} {get|find} a hard money loan. If you can wait {several|a few} weeks, then {it’s|it is} {better|far better} to {get|find} a hard money loan.


{Hard money lenders can help fund your next loan|Hard money lenders can help finance your next loan|Hard money lenders can help finance your next deal|Hard money lenders can finance your deals fast}

Hard money lenders {work|serve|assist} a very specific group of {people|individuals}, i.e. {real estate|property} investors. Hard money lending is a {form|type} of {short|bridge} term {lending|financing}, which is secured by {real estate|property}. Specifically, the {people|men and women} who use hard money loans are {typically|generally} {real estate|property} investors – typically, {those|people} who are being denied a {traditional|conventional} loan {due to|as a result of} stringent guidelines.

Hard money lenders exist {because they are|since they’re} fast, and {offer|provide} loans with little to no headaches. Hard money lenders have a {streamlined|fast|smooth|relatively simple} application system. They {expect|anticipate} collateral and {don’t|do not} look at your credit {score|rating}. They {focus|concentrate} on your {experience|expertise}, {rather than|as opposed to} your {credit worthiness|credit score}. {If|In case} {you have|you’ve got} a {checkered|bad} financial {past|history}, {it’ll|it will} be {easier|much easier} to obtain financing {by using|with} a hard money loan {rather than|as opposed to} a conventional loan {which is|that’s} granted based on your credit report. Below are {situations|scenarios} where hard money lenders fill a void that {traditional|conventional} lenders {don’t|do not} touch:

{states} Hard money loans can be used for {fix|repair} and flip {real estate|property} investors

Most traditional lenders {will not|won’t} {give|offer} you a loan {for|to get} a fix and flip {project|job}. If the {house|home} is in {poor|bad} condition, or {there’s|there is} some other abnormality with the {house|home}, then a {traditional|conventional} lender {will not|won’t} give you funding. {In addition|Additionally}, most {fix and flip|reverse and fix} {potential|prospective} deals”go {fast|quickly}.” The seller is {very|extremely} motivated to sell the property, and will accept the first {offer|deal}. {Traditional|Conventional} lenders take forever, so by the time the loan is approved – {you’ve|you have} already lost the property {since|because} someone paid {cash|money} for it. {If you|For those who} have a hard money lender on your side who {can|will} close a loan in 5-10 days, you can {get|find} the fix and flip property.


{Hard money loans|Loans from private money lenders} are {great|good|ideal} for {people with bad credit|consumers with poor credit|people who have poor credit|people who don’t have great credit|people who have extremely terrible credit}

Most {traditional|conventional|run of the mill} lenders look at a {borrower’s|potential borrowers} credit {report|score|history}. They {verify|look at} your income and {investigate|explore} past {delinquencies|activities}. {It means|This means|This implies|This usually means} that {someone|somebody} with a {checked |}credit {history|past|score} will have a {difficult|challenging} time, and in some {cases|instances} never get approved. {When|If} this {happens|occurs|happens to you}, your only {option|choice} is to {work|use} with a {hard money lender|private money lender|private lender|hard lender}. While the {interest rates|rates of interest} for a {hard money loan|private loan} are higher than {traditional|conventional} loans – {if the deal makes sense|if you can still make money|if the deal is still profitable}, it {might|may} make sense to {take|spend} the money.


{Hard money loans are great for bridge funding|Hard money loans a type of bridge financing|Hard money loans are bridge loans|Hard money loans are essentially bridge loans|Hard money can be a form of bridge funding}

{Sometimes|From time to time}, your {project|job} goes over-budget and {as a result|because of this} you {need|require} additional {funding|funds|money|capital}. Some {traditional|conventional} lenders will {refuse|deny}, because the {project|job} isn’t {completed|finished}. {While|Though} this can be {devastating|catastrophic}, a hard money lender {might|may} be willing to lend you the {funds|money}. Hard money lenders are {happy|delighted} to {give|provide} money to bridge the gap in {funding|financing}, and can work with you to fill {that|this} void.



Hard money gives you {bargaining power|leverage}

If {you’re|you are} a real estate {investor|agent}, more {funding|funds} means more deals. By using outside {hard money|money}, you can {work on|focus on|get involved in} more simultaneous deals that would otherwise {be impossible|not be possible}. {Traditional|Conventional} lenders {look at|consider} your {overall|entire} debt to income ratio, and {won’t|will not} give you {a loan|funding} if they {think|believe} you {owe too much money|have a lot of existing debt}. In contrast, a hard money lender {doesn’t|does not} care about your income, nor do they care about your {outstanding financial obligations|existing debt|present debt}. The {only|one} thing a hard money lender will {care about|fixate on} is the value of your {property|asset}. Hard money loans are {great|excellent} for developers who need funds to get their project started but {aren’t|are not} a {good|fantastic} fit for {traditional|conventional} lenders. {Remember|Keep in mind}, traditional lenders {aren’t|are not} interested in taking on {extra|additional} risks – they legally {aren’t|are not} allowed to {after|following} the 2008 {economic crisis|crash}. Hard money loans {can close faster than|are finalized faster than|typically finalize faster than} {traditional|conventional} loans from a {bank|financial institution}, which {allows|permits} you to move {faster|quicker}. {Many property owners|Many property sellers|Many sellers} will be {extremely reasonable|willing to work|flexible} on their {price|cost} and {willing|ready} to {cut you some slack|give you an easier time|work with you} – if you can show {you have funding approved|you have funds available|you can pay immediately|buy the property ASAP|proof of funds|proof funding}. Many {real estate|property} investors that rely on {traditional|conventional} lenders {are unable to|cannot} move fast {because of|due to} delays {due to|because of} the {cumbersome guidelines traditional|strict guidelines conventional} lenders have. Speed and unlimited money, is why hard money is {good|great}.


{Hard Money|Private Money|Private Money Loans|Hard Money Loans} can be used for {Residential|Family Residential} {Properties|Investment Properties|Real Estate Investment Properties}

{Hard money loans|Private money loans|Hard money|Private money} {can potentially be used for|can be used for many|can be used for} {many types|various kinds} of {properties|real estate investment properties}, {ranging|which range} from commercial properties to residential properties. {Often many|Typically} {real estate|property} investors who {contact|reach out to us} us are {looking|searching} for a {loan|private money loan|hard money loan|private money} for single family {residence|investment property|home}. Many {are doing|do} a fix and flip, or {they are|they’re} {buying|purchasing} the property to {hold it long term|maintain it long term|expand their real estate empire} and {rent|lease} it out. {Real estate investors|Investors} {who|that} {are looking|want} to fix and flip {typically|normally} find a {distressed property|run down property|property in poor condition|property in terrible shape|property in distress}, {purchase|buy} it {below|under} market value, {rehab|rehabilitation} the property, and then resell it {in order|so as} to {make|create} a profit. {Most fix and flips are done within 6-9 months|Most fix and flip loans are repaid in 6-9 months|Most fix and flip transactions conclude after 6-9 months|Most fix and flip properties are done in 6-9 months|Most fix and flip projects are done in 6-12 months|Most fix and flip projects are done pretty fast|Most fix and flip projects are done in under an year}. {Real estate investors|Investors} who {purchase|buy} rental properties with a long term {strategy|plan}, typically buy it and {hold|maintain} it. {Regardless|Irrespective} of your purpose – we can {give|provide} you funding. We {fund|finance} all types of residential {real estate|property} investment properties. Many {investors|real estate investors|borrowers} come to us because they {want|would like} to create {multiple|numerous} {streams|sources} of {passive income|recurring income|recurring wealth|passive wealth|long term wealth}. Some {investors|real estate investors} use a hard money loan to {buy|purchase} the {property|investment property} and then use a {traditional|conventional} {mortgage|loan} to repay the hard money loan. {Regardless of what|Whatever} your {purpose|objective} is, we {can|may} {give|provide} you {funding|financing} for your {next |}loan.


{Hard money can be used for Commercial properties|Hard Money Loans Can Be Used For Commercial Real Estate Investments|Hard Money Can Be Used For Commercial Properties}

Many real estate investors who {want|need} a commercial {property|real estate} {can|may} get {hard money|private money|private} loans from a commercial hard money lender. At Delancey Street, we {fund|finance|lend on} commercial properties {all over|throughout} the USA, with rates as low as {7%|7 percent}, with terms ranging from 6-24 months. We {offer|provide} {amazing|great} {customer|client} {service|service to our clients}, with no hidden {fees|charges}, or bait and switch tactics. We {don’t|do not} charge {prepayment|early payment} penalties, and there are no income requirements. There are no {minimum FICO scores|credit score requirements|minimum credit score requirement}, and we have {minimal|minimum} paperwork. We {offer|provide} commercial, hard money loans for multifamily properties, office buildings, retail locations, industrial buildings, and {more|much more}. {We’ve|We have} {helped|assisted with} a wide {array|spectrum} of commercial {real estate|property} investors secure {funding|funds|hard money} for {a variety of|many different} commercial properties. {Delancey Street works|We work} with {real estate agents|real estate brokers} and hard money brokers {who|that} are {looking|trying} to help their clients {get|receive} a {private|personal} money loan. {We’ve|We have} {funded|financed} {millions in|countless} commercial loans and {can|will} work with all {types|kinds} of borrowers. Underwriting a {commercial|business} hard money loan {takes|requires} a {lot|whole lot} of effort and {requires|takes} {a knowledgeable|an expert|a motivated|a diverse} team.