hard money loans

Posted by & filed under Uncategorized.

Hard money loans for real estate deliver the funding you need to purchase property. While hard money loans are not right for everyone, they can be a life-saver in the right situation. How do you get a hard money loan? Follow these seven easy steps to find the money that you need.

Step 1. A Critical First Step

There are about 8,000 hard money lenders. However, they are not all the same. Your first step is to connect with a hard money lender that can help you get the cash you need to make your property purchase.

Look for a firm with an easy process, generous terms, and that has built a reputation for delivering as promised. Reputation is everything in hard money loans. Choose your lender wisely.

Step 2. Have Cash on Hand for a Down Payment

Have a plan in place to generate the down payment you will need. A hard money loan usually requires a larger down payment. Having all your ducks in a row before you put in that application will ensure speedy processing.

Step 3. Get your Documentation Together

While your credit score has less of an effect on whether you will be approved for a hard money loan, you will still need to show your credit worthiness. You will need proof of income. Get your documents together before you apply.

Step 4. Set Up a Business Name

You can help your cause by becoming an LLC. This is for your benefit. An LLC will protect you from personal liability should things not go well.

Step 5. Have a Solid Plan in Place

Hard money loans are often short-term loans, which means you should have a plan in place before you apply for how you will make the payments. A little pre-planning can go a long way in ensuring this endeavor is successful.

Step 6. Apply

Be sure that you completely fill out your application and provide all the requested documentation. Delays are often an issue because of an incomplete application, and missing documentation.

Step 7. Have a Lawyer Review the Agreement

It is important that you fully understand the terms of hard money loans. Enlist the help of an attorney to review your loan documents.

You are a few easy steps from having the money you need. Get started today.