Just the terms loans and lending can cause unease. The thought of subjecting yourself to what’s historically been a dreaded process isn’t exactly most peoples’ idea of a good time. Still, almost everyone — at some point or another — is going to need to borrow money for something.
We specialize in hard money lending for real estate loans, which is different than the traditional route most consumers take when applying for a loan. In the most basic sense of things, hard money lenders make real estate loans based on the value of a property. But, there’s a little more to it than that and a lot of people don’t know how it works.
People are understandably more comfortable with the lending routes they know, but banks are notoriously sluggish in the loan approval arena. Hard money lending provides another financing solution, so let’s demystify it together.
What Is Hard Money Lending And What Is It For?
The traditional loan approval process generally requires substantial proof that you’re financially able to pay it back. Additionally, the process isn’t renowned for being quick and not being approved is always a possibility. By contrast, your ability to repay a loan isn’t the first thing hard money lenders look out for. They compare the value of whatever collateral you bring to the table. Based on that value, lenders calculate your hard money loan.
For us, real estate loans and construction loans are perfect uses for hard money lending. Why? Because hard money loans are approved faster and consider the value of collateral before personal financial status. So, if you’re thinking of building an addition to your house and need a hard money loan to finance it, the value of your home would facilitate your ability to quickly acquire the funds you need for the project you’re completing.
If you’re looking for short term construction loans to finance a real estate project, hard money loans are an ideal choice. That said, as with any financial decisions, make sure you’ve done your homework before taking the plunge. Fiscal responsibility is always a good look.
Getting the money you need doesn’t have to be a drawn-out process. We know you want to get things done quickly, so get in touch with the pros at Hard Money Georgia and we’ll work with you to get the money you need without the wait. Contact us today.