When you are an investor, money issues will always face you, and one isn’t limited to where to find cash to finance their projects, including obtaining hard money loans. Hard money loans refer to the funding that is done by the private money lenders California, and when out to seek financing, one will never be short of options. There is the need for individuals seeking to make real estate investments from a given private loan lender to determine if the lender is reputable and reliable to provide them cash for their real estate investments. Here are reasons for one to make use of hard money loans.
One of the major benefits of California hard money loans is that they have fast approvals and thus an investor will have the chance to secure cash within a day or two after they have provided the lender with the needed documents. When looking to secure such a loan, the lender checks if the property has a good market value and also determines if the borrower equity is at 20% or above. One disadvantage of seeking financing from a bank is the fact that the loans from the banks might take a who month before getting approved and one getting the cash they need for their project, but in the case of hard money loans, one will get cash within a week.
Another benefit that comes with the California hard money loans is that they provide one the option to repay the loan flexibly. In the case of private money lenders, one can seek a flexible plan by discussing with the lender, but in the case of getting funds from other institutions, one doesn’t have the same freedom. In the case of banks, one will have to stick to the payment plan developed by the bank, but in the case of private lenders, one will have a customized repayment schedule.
When you seek financing from the private money lenders, you won’t have to worry about a prepayment penalties. One has the chance to repay a loan that hasn’t reached the maturity date without attracting any penalty. Thus when one gets enough cash to clear the loan, they have the choice to clear the loan without the fear of getting penalized.
You do not have to worry about the credit history and the credit score when seeking hard money loans. Loan approval is dependent on the value of the property rather than credit rating.