Private Lending for Hard Money Loans in Tennessee
When you need cash quickly, trying to get a traditional loan from a bank may take too long and will not guarantee funding. If you are looking for a better way to receive expeditious funding for an important project in Tennesee, a hard money loan from Capital Fund 1 may be a good option for you. As a short-term loan option, hard money loans have a few significant benefits.
How Does a Hard Money Loan Differ from a Traditional Loan?
When you apply for a traditional loan, most banks and lenders scrutinize your debt-to-income ratio, credit score, and employment stability to ensure your ability to pay back their loan in full. Hard money is more often based on the value of the collateral you use to secure the loan. Therefore, your cash flow is less important because the collateral can be sold to recuperate the losses of the lender. Hard money loans tend to be short term loans, in part due to higher interest rates than traditional loans. However, this should not be a surprise when you search for higher risk loans that require less paperwork and have more flexible terms.
How Do Hard Money Loans Work?
The underwriting process differs from lender to lender. Most hard money lenders look at applications individually and offer funds on a case by case basis. The amount an applicant receives is based on a loan-to-value ratio set by the lender. For an LTV of 50%, the loan amount will be half of the value of whatever assets are used for collateral. Capital Fund 1 made the process even easier with a three-step process for securing a loan.
- Submit a signed purchase contract
- Underwrite loan
- Loan funded
Capital Fund 1 in Tennessee makes it fast and simple for you to secure a hard money loan for construction, commercial projects, land and lot transactions, and fix and flip projects. Some loans may be approved and funded in as little as 24 hours with no credit check or tax information required.
Apply for Tennessee Hard Money Loans from Capital Fund 1
For fast funding on your next project, Capital Fund 1 wants to work with you. With impressive client satisfaction, more than a century of combined experience, and a commitment to long term business relationships, we want to help you and your business grow. If you are a real estate investor, Capital Fund 1 is an excellent choice for you. Contact us today to find out more from a private money loan expert and apply for a hard money loan.
When To Use It
Fix and Flip Scenarios
- Leverage your deal
- Acquisition of a trustee or wholesale property
- Use financing towards renovations
Buy and Hold Scenarios
- Acquisition of a new residential income property
- Pull cash out to purchase another income property or to update your current one
A bridge loan is another example, where a person is able to get a bank loan after a private money loan, and then use that to pay off the private loan. There are other examples, of course, and we’re happy to discuss them and how best to make use of them.
Capital Fund 1 – Tennessee Hard Money Lender
Serving Nashville, Knoxville, Chattanooga, and other areas of Tennessee, Capital Fund 1 wants to help those who need funding for real estate projects with courtesy and professionalism.
Learn more about our Private Money Loan Programs
** Additional Fees May Apply