Hard money loans are quite useful especially if you are looking for quick cash to purchase a property and do not have time to go through banking procedure to apply for a loan. Hard money loans might not be suitable for everyone, and it extremely important that you gather all information about such loans, before you opt for one.
Understanding the Entire Hard Loan Process
Hard money loans are a short term loan funded by private investors. The term period for such types of loans is 12 months, but can be extended up to 5 years. Here the eligibility criterion is not your credit score, but the type of property that you might be purchasing.
Hard money loans are not for everyone. These types of loans are generally used by real estate developers who are looking at short term financing options. If you live in and around Phoenix, you might come across many credible companies that deal with raw land loans Tucson, Phoenix.
Credible companies such as Capital Fund I LLC located in Scottsdale, Arizona are pioneers in hard money loans. All you need to do is fill up the loan application form, bring with you the signed copy of your accepted purchase contract and their underwriters will contact you shortly. It is a simple and quick process without hassles of paperwork.
Some of the benefits of applying for hard money loans include:
- It is fast and quick
- It helps investors to negotiate a better purchase price
- It is more flexible than other traditional loan agreements
- The approval process is must faster
- This is a convenient option who need to close deals faster, but have a low credit score
Factors to Keep in Mind While Opting for hard Money Loans
When it comes to loans, you definitely do not want to take the chance. You need to research your options carefully before you take the dive. When you visit hard loan companies you need ask the right questions. Many companies might take any type of properties as collateral, while come might only limit the options to a specific type of property.
You might even want to enquire about the interest rates offered by the company. Different companies have different interest rates based on various factors. Bear in mind that since you are opting for hard money loans, the interest rates might be a bit high.
When you are evaluation hard money loan companies, ensure that you pay attention to their fees and loan terms. Be a smart investor and weigh your options carefully.