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Hard money loans these days are filling
an important niche left when the banks started tightening their lending
requirements. No longer are hard money loans only for borrowers
with poor credit, but rather they are becoming an option for the well
qualified who, for one reason or another, no longer fit within bank
guidelines.
Some examples of hard money loans
filling this niche can be found in construction these days.
Construction financing is extremely tight, with very few banks lending
for construction purposes.
Regardless of how strong a borrower may
be, obtaining construction financing through conventional means is
difficult at best these days. Obtaining construction financing
with the use of hard money loans, however, is realistic, especially for
the very well qualified.
Another example of hard money loans
filling this empty space left when banks tightened their standards is
loans to real estate investors. It can be difficult to nearly
impossible to finance property with a bank these days if you own more
than four properties. This is, again, true regardless of how well
qualified a borrower may be.
Hard money offers an opportunity for
real estate investors to take advantage of the current downturn and
tightened lending to continue acquiring properties, regardless of how
many are currently owned.
Real estate investors looking to fix
and flip are also finding funding through hard money loans. This
is a growing niche, and can allow for the use of the after repair value
of a property, something that most banks will not consider.
Even for the most well qualified
borrowers, money can be tough to find for various projects. By
working with hard money loans and hard money lenders, however, you can
obtain financing for real estate projects that the banks simply will not
fund.
If you have a project in need of
funding, or simply want to explore what is available among hard money
loans for you, please call us today. We are always happy to
discuss any scenario with you.
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