Hard money lending is way to borrow money without using traditional mortgage lenders. This may be the only option for those looking to lend money quickly or aren’t able to get approval through traditional mortgage lenders. Since hard money lenders take a different approach and require secured collateral to lend the loan, they don’t necessarily worry about your ability to pay. They know they can get their money back by selling the collateral. When looking for a hard money loan lender in Denver, consider these factors when making the investment.
When to Use Hard Monday Lending Options
Hard money lending is beneficial for short-term loans such as fix and flip loans for a Denver home that they know they will sell fairly quickly. The loan is taken out just long enough to fix the property and increase its value. Perhaps you’d like to get a property and stay in it. Hard loan lenders can help you get into the home quicker but you will need to refinance when you find a better loan. When you’re looking to buy an investment property, the hard money lender will lend as much as the property is worth. If you’re forcloseing or other negative credit issues, it’s not as important to lenders. Even if you need to borrow against a separate property that you own, the lender cares only about the property value. Hard money lenders are flexible because they deal with the individual rather than a larger corporation that wants strict policies and procedures to be met. Hard money loans can be closed much more quickly than traditional loans because the lenders can depend on the collateral in the end.
Hard money lenders can be expensive if you don’t know what you’re up against and you don’t have the right lender in your court. That’s why it’s imperative to develop a relationship with a lender who can help you get the most of you loan and will close deals that others necessarily can’t.
The Bottom Line
Think of hard money lending as a better (but possibly costly) investment for loan options when other lenders aren’t giving you a break. While it’s a great approach and relief to know that you’re covered if it doesn’t work out, it’s not the best way of looking at the hard lending opportunity.
Are you looking for a hard money lender or have general questions about whether the loan you require is right for you? You need assistance from a team of professionals who want to meet your needs as quickly and thoroughly as possible. Bold Funding Group focuses on flip-and-fix loans, commercial and business lending, and more. Contact them today or fill out the application page to get started!