Hard loans are often associated with non-private properties such as residential apartments, business complexes, and other foreign properties. However, over time, homeowners have also begun considering hard loans as a possible means of financing their mortgages or settling urgent payments related to rental properties.
As a borrower, you can secure a hard money loan on a majority of properties. Several companies like Monroe Funding Corporation offer hard money lending services in Palm Beach. That’s especially so for borrowers who own properties within Central and South Florida. However, in some instances, lenders opt to specialize in certain kinds of properties such as commercial and industrial properties. Always ensure that you select a lender that deals in your line of property.
Interest Rates and Payment Plans
Hard loans are characterized by a slightly higher interest rate and shorter repayment period. That’s often due to the nature of the loan grants. Unlike normal bank loans, which take a few weeks to months to mature, hard loans often mature within 48 hours or less. When borrowing a hard loan, it’s prudent to consider the interest rates and repayment periods offered by different lenders. That allows you to settle for a lender whose requirements suit your financial conditions.
Track Record and Credibility
Private money lending is often a complex segment of financial lending. As the borrower, you want to deal with an already established lender. Such lenders usually have overcome possible obstacles and have designed an efficient method of operation. You’re also looking for a lender with proven credibility. Such credibility may be determined by assessing the reviews that different lenders have received from various borrowers.
Many borrowers have resorted to seeking the services of hard money lenders due to their leniency. Unlike other credit institutions, hard money lenders are only concerned with the equity capital invested in the asset to be used for security.