Hard money lenders provide asset-based lending based on property values such as a multifamily apartment or some other kind of commercial real estate. There is very little documentation required to get a hard money loan. To find the best hard money lenders for real estate, it is important to check the references and get complete information about them.
It is the hard money lenders that help you during a time of need and give you quick funds to close your deal faster. The shorter the duration of your hard money loan, the better it is for you and the lender. If everything is done correctly, it can be a win-win situation for both lenders of hard money and you.
Hard money lenders usually lend for a short period of time and they lend to people who are in financial distress or for those who are close to bankruptcy or foreclosure. No doubt that the interest will be high but you do not need to use a more expensive method.
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For the most part, hard money lenders do not care about your personal credit history. They also do not care about your job or past bankruptcy. The property you have is what they need to secure a loan. Do not plan on getting 100% financing of a hard money lender. On average you'll get about 60 to 75% of the value of your property.
Expect to seal the points as well – from 1 to 10 points depending on the lender you choose. It is recommended you talk with some hard money lenders before making a decision. Ask as many questions as you can about their background and their experience in the field.