How To Choose A Commercial Hard Money Lender Using Common Sense
by Tom G. Honeycutt
What is hard money? When it comes to real estate this type of lending can facilitate the dreams of people that would not qualify for a bank loan. Potential buyers need to know how to choose a commercial hard money lender using common sense.
The crash of banks and other financial institutions eight years past has created extra challenges to the typical potential buyer. Since that time, banks have lowered the interest rates, but they have also raised the standards for borrowing. Many people without an excellent credit score want to buy or invest in real estate, but just cannot get a loan approved.
This unique type of lender simply identified a need and is capitalizing on the potential profit of filling that need. This is a win win situation, as both the borrower and the lender benefit. This type of lending will provide will provide a short term loan to someone who wants to purchase most types of real estate, residential commercial or land. Once the borrower has established a payment history and earned some equity in the real estate, he or she should be able to refinance to a lower rate mortgage.
The interest rates are not exorbitant. In fact they are often lower than the average home buyer faced less than ten years ago. Of course rates different, depending on the lender and the borrower. So it does pay to shop around for the best deal.
This lending can work for a consumer looking to own their home and for investors looking to flip houses. In short, you can finance the acquisition of your family home or start a new business flipping houses. Keep in mind that the length of the loan will impact the interest rate. One to three year loans cost less than a six month loan used to flip a house. Lenders may also consider the quality of the property and its location.
Often buyers find that a local company or individual with a connection to the community will be flexible and more buyer friendly than a corporate HML. The rule of thumb is the bigger the company the harder it may be to qualify. If you are short on cash HMLs will back one hundred percent of the mortgage. Your best chance may be local.
Renting a home is not a good way to manage your money. How does your potential lender rate with the Better Business Bureau or AM Best? What do their borrowers say on social media? Flipping houses or owning a home has significant tax advantages. Do not let the high cost of rent stop you from going after your dreams.
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for <a href="http://www.ifundinternational.com/ifund-commercial-mortgage-finance-company-loans-atlanta-ga/">Commercial Mortgage Finance Company Loans | Atlanta, GA</a> He suggests you check out the website<a href="http://www.ifundinternational.com/" > iFund International</a>.
---------------------------------------------------
You are receiving this because you signed up for it on 2014-06-13 from IP
To fine-tune your selection of which articles to receive, just login here:
http://www.uniquearticlewizard.com/bloggers/
using your username:
To unsubscribe please use the following link:
http://www.uniquearticlewizard.com/unsubscribe.php?mail=mohsin926.world@blogger.com&code=130f4b3e06594df6daa30a602e9f4c8f
---------------------------------------------------
---------------------------------
New Unique Article!
Title: How To Choose A Commercial Hard Money Lender Using Common Sense
Author: Tom G. Honeycutt
Email: rafael.e.zabala@gmail.com
Keywords: commercial bridge loans,commercial building loans,commercial fianancing brokers,commercial real estate finance,commercial mortgage finance,commercial hard money loans,private commercial lenders,commercial investment loans,commercial property loans,commercial real estate loan lenders
Word Count: 441
Category: Finance
---------------------------------
No comments:
Post a Comment