Situations That Call for a Residential Hard Money Lender
When you’re shopping for DC hard money real estate loans, it’s helpful to know what situations are most likely to apply. With a streamlined application process, this type of loan can be ideal in a number of scenarios:
- Buying a property before it hits the market. If the debtor finds out a property is available before it is listed, or knows it will be short listed in the near future, securing the hard money loan will mean being able to buy the property before others know it is available.
- Anticipating an increase in property value. Renewal projects in the area will commence in the next few months and the value of the property will skyrocket. Buying it now and putting a little money in renovations will pay off in a big way.
- The deal must be closed quickly. When there is no time to waste, a hard money loan can have the cash in hand faster than traditional loans. The applicant does not miss the closing date and can move forward with using the property as an investment.
- The debtor can’t get a traditional loan. Credit issues from a few years back make traditional lenders leery of extending the financing. Since the hard money lender is more interested in the value of the property, the chances of obtaining the financing are better.
- Lower down payments. When there is not a lot of money to pump into the investment up front, the terms of the hard money loan will make it easier to get the funding with less up front expense.
The bottom line is that this type of loan can help an enterprising applicant accomplish great things even if the individual does not have the best credit. Between the easier application process, the range of collateral options, and the quick turnaround on getting an answer, there is no doubt that the entrepreneur can move faster and beat the competition.
Before focusing all hopes on a traditional loan, talk with a hard money lender and see what sort of deal can be worked out. In the long run, this approach could be just the type of help needed to make a dream come true.