Hard Money Loan Advantage
Sometimes obtaining money quickly is of the utmost importance; especially when the alternatives are big banks that want a long-term loan requiring extensive credit checks and income verification. With private, hard money loans providing an alternative, there are significant benefits to be had. By using collateral to secure a short-term loan with Capital Fund 1, you prove that the value of that collateral can be sold to recover any losses for the lender, thereby negating the need to prove cash flow.
Benefits of Hard Money
Using a direct private money lender like Capital Fund 1 allows you the benefit of cutting out the middleman. This has the following positive effects:
- Flexibility: Each situation is dealt with on an individual basis. Therefore, payment schedules can be negotiated.
- Approval: A lender lends based on collateral. This means they can lend as much as what your property is worth. Approval is generally simple as long as the lender can be able to sell the property quickly.
- Speed: A hard money lender usually has a personal relationship with a buyer; therefore, once the basics of a deal are understood, a loan can be approved quickly.