Do You Feel That Getting A Hard Money Loan is Unfair?
Can you take a minute out of your day to just imagine how it would be if you had all the cash you required, all of your credit reports with a score of 800+ and every financial institution giving you a 1% or 0.5% interest rate? Wow, that would just be awesome would it not? Sure it would, but that is just a dream and not a reality. The world we live in is dark and evil when it comes to securing a hard money loan, period. Hard money was created to give assistance to those that just can’t get cash any other way, but NEED IT BADLY!
So How is Hard Money Going to Help You?
Hard Money in simple man terms is money that you are able to secure from private investors in order to obtain a building loan, be it residential or commercial. Clearly the terms are are not going to be as friendly as terms you would get with a conforming bank, but then again, they would never approve you, so when you have no choice, you need to secure a hard money or bridge loan, simply said. There are defining factors and characteristics to such a solution, and they are as follow (hope I didn’t lose you yet):
- What if your building worth?
- Expect the loan to be between 6 months to 3 or so years
- The rate you will pay can be between 5% – 20%
- You will be expected to pay a fee to get the loan documents completed
- Your credit will not be checked and we do not need any references from you
- You will get your cash within hours or days
- If your property is damaged and its condition is not so well, we don’t care really
That said, you should not feel that it is unfair to get a hard money loan, because if the bank wont give you the loan, what is wrong with an investor dealing with you directly? It is just an extra option for the population of New York, simple said.