real estate loans

5 Reasons Hard Money Is the Best Option for Commercial Real Estate Loans

5 Reasons Hard Money Is the Best Option for Commercial Real Estate Loans

Here is a snapshot of five benefits accrued when dealing with a private money lender as opposed to a traditional bank loan;

Obtaining Financing When Banks Fail to Provide Additional Loans

More often than not, banks will cap the number of loans to a single entity or borrower at four. Private money lenders do not follow such limitations as they are primarily focused on the borrower’s equity in a property. Additionally, private money lenders may view working with more properties as a positive since multiple properties give an investor more options and can cross-collateralize them when needed.

Borrowers Can Ask for Real Estate Advice

While applying for a loan with private money lenders, borrowers can rely on them for professional real estate investing advice. For instance, Wildcat Lending, which is based in Texas adequately understand the real estate business in the region and they are familiar with the state laws. Therefore, though they are not personally real estate investors, they have worked in the industry long enough to identify the best opportunities for investors. They can also analyze a loan request on a certain project and give their honest opinion. They are able to pinpoint areas of concern that can potentially hurt the real estate investor and subsequently provide a professional advice.

Private Money Lenders Are More Flexible

Traditional money lenders are notorious for exercising strict rules and following arbitrary criteria for approving loans. Their regulations prevent thousands of borrowers from obtaining loan approvals. While private money lenders have a set of rules and criteria for approving loans, they are significantly less and more flexible than what is required by traditional money lenders. A borrower stands a higher chance of working through a certain issue with a hard money lender and settling in a satisfactory solution to both parties than he or she does with a traditional money lender

Quick Approvals and Funding

Applying for a loan with a hard money loan is not as complex as taking a loan with a traditional lender; it is an easy and straightforward process. Even with a perfect credit score and a stable income, getting a loan from a traditional lender is a painful slow process. If it is difficult to verify your income and there is a spot on your credit history, the process becomes even longer and the chances of getting approval is drastically reduced. On the other hand, to get hard money in Texas requires the borrower to only fill in out a standard loan application form and the borrower can receive a conditional loan approval after having a fifteen-minute conversation with the lender. While banks take over a month to give a response to loan application, reputable hard money lenders fund a loan within a week or two. The ability to acquire funds at such a faster rate has a significant advantage to real estate investor, especially when the property in question has many competing bids

A stable Income History and a Perfect Credit Score Are Not Necessary

Most loans use a person’s credit score and available income to assess his or her credit worthiness. A single blemish to either of the two can prevent the bank from approving the loan. While banks focus more on a person’s past history of borrowing and the ability to repay through his or current financial status, private money lenders have no such stringent terms. Their primary focus solely rests on two things; the value of the property to be acquired as it will serve as the loan’s collateral; and the equity the borrower has in the property. With their own set of rules and regulations, private money lenders are more comfortable dealing with valuation and equity. This is what makes them not to follow strict criteria and be flexible with the borrower’s income and creditworthiness.

Whether you are a new entrepreneur or a seasoned real estate investor; hard money loan is the best option for you. Call Wildcat Lending, a trusted private money lender based in Texas to learn about the option that best suits your situation. We provide fast approvals at very competitive rates to allow our clients to have more financial strength when buying properties and an opportunity to quickly make a significant profit. For more questions or comments contact us and learn more about our services.

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