Top Ten Reasons To Consider Hard Money

Filed under Hard Money Basics by on August 19, 2011 at 9:52 am {no comments}

Here are the top ten reasons to consider hard money loans for your financing needs:

1) Banks won’t lend to you because you currently own too many properties.

2) Banks won’t lend to you because of credit issues, foreclosure issues or short sale issues.

3) Banks won’t lend to you because you are unable to document your true income through W-2′s.

4) You are purchasing properties in need of rehab (so the banks won’t lend to you).

5) Your commercial property does not meet the debt coverage ratio required by the banks (so they won’t lend to you).

6) You are not a US citizen, but would like to purchase property in the US.

7) You are purchasing a distressed income producing property that is not stabilized and you need a short term bridge loan to stabilize the property in order to obtain traditional financing.

8) You want to finance any type of construction or construction completion.

9) You want to finance any type of land purchase.

10) You have other unique situations in your credit history, ability to document income or are securing the loan with a unique property type.

Of course, there are many other reasons why you may want to use hard money to finance your real estate transactions, but these are the top ten we hear about these days. If you are in a situation where the banks won’t lend to you, call us today at 877 462 3422. Usually we can let you know if we can potentially help finance your project with a five or ten minute phone call.

Hard Money

Filed under Hard Money Basics by on February 14, 2006 at 4:26 pm {one comment}

Hard money lending today is a blanket phrase for many different types of loans. With sub-prime loans a thing of the past, and the conventional lenders tightening their lending standards, hard money is still an option for many borrowers, regardless of credit type.

Hard money lenders are loan to value driven. Credit scores, the ability to repay and the overall picture do play a part in the decision to lend or not to lend on a particular transaction, but the largest consideration is given to the property value and the percentage of debt against it. With hard money lenders, this loan to value ratio typically needs to be a maximum of 60%, 65% in a best case scenario, depending on the location and type of property. For example, commercial properties located in San Francisco we may be able to lend as high as 65% on, whereas rural properties we may be capped at even 50-55% of the value (this is as of late May, 2009, and has changed substantially over the past 6-12 months).

Hard money lenders offer flexibility that is needed in today’s market. Cross collateralization of multiple properties is one way that a hard money lender can overcome higher loan to value ratios. Additionally, hard money lenders will work with borrowers on a personal level. You have the opportunity to speak with the individual making the funding decision. With no minimum credit score required, hard money lenders will give you the opportunity to present your individual situation and will then make a decision based on a “make sense” type of scenario. If the loan makes sense for both the borrower and the hard money lender, the deal will typically fund. A good hard money loan is one where there is a solid exit strategy and a clear benefit to the borrower.

Working with a hard money specialist is extremely important when trying to obtain private financing. Structuring these deals is different than putting together a conventional loan package. In addition to properly structuring your transaction, it is equally important that your hard money specialist has the resources available to get your transaction funded.

My name is Chris Goulart, and I am a hard money specialist. I have access to multiple sources of funds, and also have many additional resources should your particular file not fit our guidelines. Please feel free to read more about what we can offer in the way of hard money, or contact me today to talk about your loan scenario. I can be reached at 877 462 3422. This is my direct line.