3 Reasons Hard Money Loans Close Deals Faster

Get a Strategic Advantage with Real Estate Deals

 

There are several reasons why hard money loans close faster than bank loans. Depending on the reason you need a hard money loan, there are various options and funding timeframes. For the reasons outlined below, this is as it pertains to investment property purchases or refinances.

Focus is on Collateral: Hard money loans are called such because the collateral used for a hard money loan is a “hard asset,” usually real estate. Because hard money lenders are more concentrated on the value of the collateral, versus the financials of the borrower, these loans can usually fund once property value is determined.

Less Paperwork: Because some hard money lenders don’t have to verify income or credit of a borrower in order to approve a loan, there is a lot less paperwork involved in a hard money loan. For this reason, a hard money loan can close faster than a bank loan.

Shorter Approval Process: These days, banks are really taking a long time to underwrite loans, particularly on investment properties. If a real estate investor wants to take advantage of a great opportunity and move quickly, a bank can’t be forced to move quickly. In some cases if you need a fast loan approval, a hard money loan is the only route to take.

Call us today at California Private Money Lenders to see how we can help you close a great real estate investment deal quicker. You may also fill out our online borrower’s form and one of private money specialists will be back in touch with you promptly.

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