Hard money loans are typically considered a cash sale by the seller, which makes the possibilities of closing the deal more certain. The offer is still considered a loan; however, it comes with a number of benefits that both parties of the transaction can appreciate:
1. Since the borrower and the property have both fully been vetted before the offer has been written, there would be no contingencies.
2. There would be no appraisal contingencies. Although the borrower can order an appraisal contingency, the offer is not dependent on the outcome since the majority of private money lending options require a sizeable down payment.
3. Private money lending companies are typically known for offering fast loan approval and are known to close the deal in a shorter period than conventional lenders and banks. It would be reasonable to close the loan in around 10-15 days as opposed to a month or more. This way, borrowers can be guaranteed quick closing.
4. The condition of the property is not of great concern. Lower quality conditioned properties are easier to purchase using private money loans since these types of loans are considered “all cash” and is based on loan to value or equity.
Private money loans (also referred to as hard money loans) are a viable option for the real estate world and can be beneficial to investors looking to make immediate purchases. While there can be a few factors that are looked into for obtaining a hard money loan, having a lower credit score shouldn’t be a problem.
If you’re interested in obtaining tampa/st. pete, fl money loans, BridgeWell Capital is just the place to consider. BridgeWell is a reputed firm known for issuing private money loans to potential investors and guarantees super-fast funding and approval as part of their services! Contact BridgeWell Capital for inquiries!