If individuals are struggling with qualifying for certain types of financing for investments, an asset-based hard money loan is the way to go.
The following state a few of the many reasons hard money loans are the best possible option for commercial real estate loans.
- Fast loans for a commercial real estate.
The application, pre-approval and funding process for a standard bank loan or mortgage doesn’t generally come easy to individuals, especially if their credit score is low. It involves multiple supporting documents and might even take weeks for them to respond and approve financing when conventional bank loans are taken. Applying for a hard money loan, however, would take way less time and could take around two weeks for all documents to be gathered for the process. Pre-approval processes could take as little as a few minutes, and applicants can get funded within merely a few days.
- Stronger offer.
If a property has high demand in the market, the investor with the hard money loan generally has the most to offer the seller. With faster processing and fewer constraints, there are fewer possibilities of failure with hard money.
- Credit scores aren’t as important.
For traditional money lending options, credit scores play the most significant role in the approval process. However, with hard money loans, the value of the property is more focused on rather than credit and income.
- Money lending flexibility.
Typically, hard money lenders have greater flexibility for negotiations. Many lenders would find different ways to ensure all the parties involved get what they want in the process.
With the information provided, readers can have some background and leverage on the benefits of hard money for real estate and can be on the way to get the next commercial property. Through the right Franklin hard money lenders, potential clients can gain the funds they require with the least hassles.
BridgeWell Capital is a private money lending organization that issues funds to real estate investors around the city. Through the lowest down payments, fastest approval and funding, and no hassles, potential clients can gain their funds efficiently for their investments!