When it comes to real estate investment, you will soon discover that having access to a private hard money lender is crucial.
When you acquire a home for the express aim of reselling it and generating fast money, using a traditional bank might be too nuisance, whereas hard money is like having your cash on hand.
Banks need you to present extensive documentation proving your creditworthiness, employment, and the value of your possessions.
On the other hand, when you use a cash lender, you get the following:
- No Credit Check
- No Income Verification
- Less Paperwork
- Quick Closings
A cash transaction typically takes around two weeks to close, but a traditional loan takes 30 days or longer to conclude owing to validating all relevant papers.
The following are the top three reasons why you might require a private hard money lender:
- If you have no or a terrible credit history
The majority of the globe has experienced a period in which they failed to pay bills on time or simply had too much credit, causing their credit score to fall. Fortunately for us, this is not a problem with these loans. If your credit scores are low, the lender will modify the interest rate to the high end.
- If you are unable to provide proof of employment
Most investors are self-employed and do not get traditional salaries. As a result, determining how much money you make every month is quite tricky. The only method to establish income is via 1099, which only shows how much you made the prior year.
- If you are buying a bank-owned property
Because the property is being offered at a fraction of its market worth, bank-owned properties typically require payment in cash. They demand you to provide the evidence of finances before they would even evaluate your offer.
This is where your hard money lender comes in. They give evidence of money and offer those funds on your behalf at closing.
There are no seasoning requirements or further restrictions. The bank sets their price, you make an offer, they either counter or accept, and you’re on your way to closing.
Using a private hard money lender is unquestionably essential if you want rapid cash with no difficulties. You shouldn’t be concerned about the high interest because your objective is to sell the home as soon as possible.
DFW Investor Lending, LLC, is a private hard money lender in Dallas, TX. They offer loans to real estate investors and developers in the Dallas/Fort Worth Metroplex. They are part of the DFW Investor Lending Group, which provides financing for residential and commercial properties.