Expanding your real estate holdings? Need to take out a loan? Consider a hard money loaning program. Traditional bank loans can appear appealing on the surface, but they come with downsides. If you don't want to worry about your credit score, W2's, the IRS and 4506 forms, a hard money loan is a great option. Hard money is provided by investors who offer equity loans for free and clear properties.
Read on to find out the benefits of an Investing program, as shared by Riverdale Funding.
Taking out a traditional loan through a bank requires a credit report. Credit scores less than 700 automatically deny you a loan, but that's not the case with hard money commercial Investing programs. You're still required to have a credit report, but your credit score will only decide your interest rate, not if you'll be accepted or denied for the loan itself.
Instead of evaluating your credit score, hard money Investors will look at the value of your existing property assets and of the property you're interested in to determine your loan amount. After appraising your potential purchased or refinanced property, some hard money Investors may give you a loan as much as 65 percent of the potential value.
Real estate loans through the bank can take time, as they may ask you to recover old tax returns, pay stubs, references and other income receipts. But you may not always have the time, especially if you're hoping to acquire foreclosed or auction real estate. Fortunately, commercial hard money loans require less work on your end, and are less of a time-consuming hassle.
These are just some of the many benefits a hard money loan can provide you with.