Hard money commercial loans are a great way to obtain needed funding to take your business to the next level. Read on to find out more about how these loans can get you the cash you need… fast.
Hard money commercial loans are private loans that are funded by lenders that investors and business owners can use when they need to seek alternative financing choices. They can be used primarily for real estate investment or foreclosure properties. These loans don’t require quite the amount of extensive paperwork or strict regulations as traditional or conventional loans do, so they are usually a bit easier to obtain.
These loans do have some cons in that they generally have high interest rates and you’ll want to make sure you fully understand all the fees involved, what the loan to value ratios are, and any other questions you may have including the timeline for turnaround of funding. It’s also crucial to understand that, as with any industry, there are less than scrupulous lenders that may try to swindle you. Take caution when you research lenders for your hard money commercial loans.
If you don’t have a good feeling about the lender you are talking with or they aren’t straight with you about the questions you have, it may be time to keep shopping. The right lender can be of great benefit in helping you negotiate the process of obtaining this loan and it can be a win-win solution for you and the lender.
If you are planning to use this type of loan to fix and flip investment properties, follow these tips.
With your loan funds, you can make a big difference in a real estate investment property. Be prepared by putting a plan into place before obtaining the loan. Make sure you have the home inspected and appraised. Don’t forget the importance of location, location, location and try to keep repair costs to a minimum. Create a budget for your repair and upgrades, and maintain a timeline that makes sense for you. Having a solid plan in place is an important element that makes lenders more apt to want to approve your hard money commercial loans.
After you’ve determined that you need this type of loan, don’t be hasty in finding the right lender.
Your lender is your partner is getting the best rates, terms and the total package when it comes to your loan. They can be your guidance and the person in your corner working to get the best loan for you. Spend as much time as you need to researching and even meeting with lenders to ensure you get a good feel about them, and that you can trust them with your loan.
Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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