As we all know, conventional financial institutions such as banks will not willingly lend money to you if you have bad credit. But does this mean that all your options are closed? Certainly not. More and more people are seeking financial assistance from hard money lenders so as to help them and their businesses get back on their feet. So what are some of the advantages of using a hard money commercial lender?
1. Minimal paperwork is involved in the process. When it comes to traditional banking institutions, you have to go through reams of paperwork before your loan is approved. This takes a lot of time and can also prove to be quite frustrating. One of the benefits of opting for private funding is that minimal paperwork is involved in the process. Generally, the documents that you would need to have for your loan to be considered are a promissory note, and insurance binder listing and a mortgage. Considering that the procedure only needs these few documents for the transaction you can rest assured of less stress during the process.
2. The transaction is simple as well as cost effective. One of the attractive features of dealing with a hard money commercial lender is the simplicity of it all. You do not have to be a rocket scientist to understand what is going on. In addition to this the money lender can walk you through it so as to expedite the process speedily. You will also find that dealing with these financiers is much more cost effective. There are no hidden fees when it comes to processing the loan. In the real estate world business people view time as money, so the shorter the process, the less money that is wasted.
3. You will not encounter high fees during the process. One thing that everyone will agree with is that getting a loan from a bank can prove to be more expensive than initially conceived. This is because these institutions charge high processing fees for a myriad of things and you may simply not have that money at hand. You do not have to worry about this though with hard money lending. Since the acquisition of the loan takes a short time, there are no exorbitant fees being charged to process it. Thus you do not have to worry about additional funding to clear the balance that you are accumulating while trying to have your loan go through.