Hard Money Banking Tips

Hard Money Bankers is essentially a private self-funded and full-service hard money lending institution. They provide fast and flexible financing for commercial and residential real estate investment. They currently lend in Washington DC, Maryland, Pennsylvania, Virginia, New Jersey, and Delaware. The mission of the company is to make the lending process as swift and smooth as possible, while the highest level of professionalism and honesty is maintained. The structures and terms of their loans are tremendously flexible. The company does not dictate rigid lending guidelines as they believe each deal is different and if structured properly, they can be profitable. They recently shared with me four lending tips. Check out what they shared with me.

1. Decide Whether Hard Money Banking is Right for You

Hard money is basically a means of borrowing money without going through conventional mortgage lenders. Loans are provided by investors or individuals who advance money based largely on the property being used as collateral. When your loan has not been approved by traditional lenders, your only option may be hard money banking.

With traditional lenders, getting approved for a loan is usually an excruciatingly slow process, even with plenty of income and impressive credit scores. With hard money banking the process is a lot quicker. Therefore, this type of loan is especially useful in situations where a loan is needed quickly.

Hard money banking makes the most sense in short-term loan situations. A good example of hard money consumers are building contractors and fix and flip real estate investors. These individuals only own a property long enough to boost the value, then they sell it, and repay the loan.

2. Have Collateral Ready

Hard money bankers lend based on the collateral that is securing the loan. They are less concerned with your repayment ability. If something goes wrong and you are unable to repay, these lenders will get their money back by selling the collateral. Essentially, the collateral value is more essential than your current financial position.

3. Find a Hard Money Lender to Meet Your Needs

To get a hard money loan, you will need to connect with investors. This can be done by finding out the lenders in your area who provide loans based on collateral. Local real estate investor groups and agents are a remarkable source for names.

Consult with a few lenders, outline your needs, and form a relationship so you will be able to fund projects faster and easier when the need arises. However, you should not just settle for any lender. The one you ultimately choose should be established and reputable.

4. Be Open and Honest with Your Hard Money Lender

In addition, hard money lending can provide more flexibility than traditional lending agreements. Standardized underwriting processes are not used by hard money lenders; instead, each deal is evaluated individually. Therefore, you may be allowed, based on your situation, to tweak a few things like the schedule of the repayment. You could be getting a loan from an individual who is prepared to talk and not a huge corporation that has rigid policies.

It is very important to be open and honest with the lender when you are seeking to get a hard money loan. As was previously highlighted, the majority of hard money lenders are not overly concerned about your credit history or your current credit scores. While some lenders will look at credit scores, income and other factors, your loan can still be approved without them if there is enough equity in a valuable piece of property. Essentially, when you are open and honest with your hard money lender, this could assist you in getting the most money and the best possible repayment structure.

Get More Hard Money Banking Tips

For additional details on hard money banking, you can log on to HardMoneyBankers.com. You can also follow Hard Money Bankers on Twitter at https://twitter.com/hardmoneybanker and Facebook at https://www.facebook.com/hardmoneybankers.