When a hot real estate deal is on the table, traditional financing often slows you down and makes your offer less competitive. With a faster turnaround time, hard money loans can provide a quick, easy approval that gets you ready for action ASAP.
A standard bank providing a conventional loan must adhere to strict standards and regulations, which slows down the approval and closing process. These criteria include guidelines that require documenting and verifying a loan applicant’s current income, credit history and job stability. A hard money lender like California Hard Money Direct, however, is able to avoid these rules due to utilizing private investments.
Hard Money Lenders Focus on Collateral
Fast approvals and closing times are not the only advantage of this type of financing. Since private lenders are not bound by the same restrictions as conventional financing institutions, they provide a viable alternative for those who suffer from a recent change in employment, short credit history or other subprime factor. These hard money loan providers make approval decisions based primarily on the value of properties.
Specifically, a lender, like California Hard Money Direct, will want to review your equity to ensure a satisfactory loan-to-value (LTV) ratio. If you have the proper collateral or LTV ratio for your property, you will likely be approved. It really is that simple, and this keeps the approval process quick and easy.
Who Benefits Most From These Loans?
In a highly competitive real estate environment, property flippers (or fix and flip investors) often benefit from fast turnarounds. Additionally, flippers often get ahead by being able to invest in more than one property at a time with hard money loans. As long as the required assets are available, flippers aren’t limited to taking out a single loan at a time.
This flexibility is also advantageous for commercial investors and other non-owner occupied property investors. Whether you are hoping to invest in a single family residence (SFR), condo, office building or other commercial real estate, California Hard Money Direct can help you close the deal.
Don’t Let That Deal Slip Away
When a good deal hits the market, it never lingers long. Make sure you are ready to move fast when an opportunity presents itself. Submitting a quick pre-approval request only takes a few minutes, and this allows you to be prepared to make an offer right away.