When one is in need of cash, they will have a variety of options, and one of the ways that one can get cash is by obtaining hard money loans. The hard money loans are funds that one obtains from the California private money lenders, and when you need quick financing for your project, you will never be limited with the number of options that you will have. There is the need for individuals seeking to make real estate investments from a given private loan lender to determine if the lender is reputable and reliable to provide them cash for their real estate investments. Here are reasons for one to make use of hard money loans.
The number one reason why the hard money loans are the best option when one is out to seek finance for their real estate investment is the fact that it doesn’t take long to have the loans approved, unlike in the case of loans, since one can have their loan approved within a day or two after providing the lender the needed documents. If one has to secure a loan from the private money lenders, they will have to prove that the property has a good market value and also prove that they have at least 20% equity. Unlike in the case of normal loans which take a month or even more, hard money loans provides you the case within a week, and one needs to inquire when the private money lenders provide the cash when seeking financing.
Another benefit that can motivate the investors seeking to get cash for real estate investments to find cash from private loan providers is the fact that they will have a flexible repayment plan. One can ask the private money lender to develop a payment structure that is personalized to suit the borrower, but you won’t have the same freedom in the case of other institutions. With banks, one will have to adapt to the payment plan developed by the bank, but with private lenders, you can have a payment plan developed that will suit you.
When you seek financing from the private money lenders, you won’t have to worry about a prepayment penalties. The hard money loans can be repaid even before the maturation date without one incurring a penalty. One is afforded the opportunity to find cash and repay the loan without incurring a penalty.
You do not have to worry about the credit history and the credit score when seeking hard money loans. Loan approval is dependent on the value of the property rather than credit rating.