Private money loans are very popular with budding real-estate investors. Investors with poor credit ratings may not be able to access traditional mortgage options. The slow approval process at the bank might require you to submit your tax filings, credit scores, and appraisals before the loan is approved.
You can also get the hard money personal loans by clicking at: South Floridas #1 Hard Money Lender – Private Money Lending.
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Investors often see hard money lending as the solution to their cash crisis. Is it the best option to take out a private loan? Continue reading to learn three reasons why you might want to consider a hard cash lender.
1. YOU'RE RUNNING OUT OF TIME
Because the real estate market is fast-paced, you need to have cash to not lose out on a potential deal. Traditional money lenders can be frustratingly strict and take a long approval process. Traditional mortgage loans can take between 30 and 45 days to be approved. This waiting period can prove to be detrimental for your future real estate business.
2. A NEW START IS ESSENTIAL
Investors looking to get credit to finance their business ventures face severe financial difficulties due to poor FICO scores. Poor credit scores affect approximately 68 million Americans. After reviewing your credit history, traditional lending might not be willing to give you another chance. It can be difficult to bounce back from bad investments or tough financial times.
3. A PLANNED PLAN IS AVAILABLE
Real estate investments can be very risky, especially if you are focusing on fix and flip deals. Traditional lenders may grant your business plan a big pass. Private money loans may be available to provide the capital needed to finance the deal. The approval and application processes are simple and easy to follow.