Author's Posts:
Finding Hard Money on Your Terms.

Today’s lenders often demand a lot of information and time from their clients. Most institutions will only give loans to people that have excellent credit and relatively high incomes. To make matters worse for consumers, lenders can take weeks deciding whether to extend loan offers.

Avoiding traditional loans and focusing on hard money loans can make it much easier for people to access the money they need for expenses like medical care, car repair, and real estate.

What Is a Hard Money Loan?

Hard money lenders don’t care about a person’s credit history, credit score, or proof of income. They only care about collateral. As long as the borrower has enough collateral to cover the loan’s value, the person can get the money quickly.

In many cases, people can use the item they plan to purchase as collateral. For example, if a real estate investor needs money to purchase, improve, and sell a house, the house fills the role of collateral. Keep in mind that lenders will not offer more money than the property’s value. If the property has a $100,000 value, then it’s only possible to get a loan up to $100,000.

The lender, however, needs to know that he or she can sell the collateral for the loan amount.

The option to use real estate as collateral makes hard money loans particularly attractive to people who flip houses for profit. Instead of risking their own money, they can borrow money to buy property. Assuming that real estate investor sells the home for a significant profit, they can still earn cash after repaying the loan and its interest.

The Benefits of Hard Money Loans

Hard money loans have several benefits that make them more attractive than traditional loans and mortgages.

It’s Easier to Get Approved for a Hard Money Loan

Hard money lenders don’t need to evaluate your creditworthiness. They just need to know that borrowers own property that covers the value of the loan.

People who get turned away by traditional lenders often find that they get approved by hard money lenders.

Borrowers Use Collateral for Their Loans

Since hard money lenders don’t care much about income levels and credit scores, they rely on collateral to protect their investments.

Hard money lenders typically try to keep their loan-to-value ratios fairly low (between 50% and 70%). Borrowers, therefore, can access up to 70% of an investment property’s current value. If borrowers need to borrow more money, then they can use other assets as additional collateral.

Common types of collateral include:

  • Vehicles
  • Homes
  • Land

By using a combination of property as collateral, borrowers can increase the amount of money they get.

Hard Money Loans Have Flexible Terms

Since hard money loans come from private lenders, borrowers can negotiate flexible terms that benefit them. For instance, a borrower may request a custom repayment schedule or to avoid origination fees.

Most hard money loans are short-term loans that get repaid within 5 years. Borrowers and lenders can negotiate to find a loan term that meets both of their needs.

Borrowers Can Access Cash Faster With Hard Money Loans

By eliminating the lengthy approval process that banks use to decide whether they want to lend someone money, borrowers can access cash much faster by choosing hard money loans. The lender may want to take some time to evaluate the collateral’s value. The evaluation process usually takes much less time than the approval process that traditional lenders use.

Find a Hard Money Lender Through LenderMatrix

Traditional lenders don’t offer hard money loans. Instead, borrowers need to find private investors or private investment groups. Unfortunately, beginning real estate investors may not know where to find the hard money loans that they need to purchase properties.

LenderMatrix makes it easy for anyone to find a hard money lender with agreeable terms and rates. Borrowers can simply use the lender directory to find the loan products that they need.

Using LenderMatrix also helps ensure that borrowers find legitimate lenders. The website only works with lenders interested in business and investment loans. Focusing on a variety of business loans makes it possible for LenderMatrix to streamline the lending process. Borrowers don’t have to sift through offers for mortgages, lines of credit, or personal credit cards. Instead, they can spend their time comparing offers from qualified hard money lenders.

LenderMatrix doesn’t require users to register with the website until they’re ready to accept a loan. Borrowers can review hard money lenders in the database without any obligation. When they decide to accept an offer, they can open accounts and start communicating with lenders.

Real estate investors need to buy and sell properties quickly to earn money. Traditional lenders make it nearly impossible for most real estate investors to access the money they need within a timeline that helps them generate profits. With LenderMatrix, investors can secure the funds they need as quickly as possible.

Find a hard money loan that will help you make more money from your real estate investments by visiting LenderMatrix, today. It doesn’t cost anything to use the lender directory, so you don’t have anything to lose.

April 4, 2019 / by / in
Real Estate and Business Loan Lender Directory — LenderMatrix.com

Entrepreneurs in all industries rely on loans to develop new products and grow their businesses. Without loans, companies could only advance by reinvesting their profits. A new company, however, doesn’t have the profit to invest in itself. Even established businesses may prefer using loans instead of dipping into their earnings.

Before accepting real estate or business loans, companies need to explore and compare their options. Interest rates can vary significantly from one lender to another. Different types of loan products also offer pros and cons that should affect whether businesses choose them.

LenderMatrix makes it easy for entrepreneurs to find loans for a wide range of business ventures. The real estate and loan lender directory at LenderMatrix.com should be the first place that people look before borrowing money.

Types of Real Estate and Business Loans

Lenders listed in the LenderMatrix directory offer a variety of real estate and business loans. Knowing the different types of loans will help entrepreneurs find the products that suit their needs best.

Hard Money Loans

Hard money loans often appeal to people who invest in real estate. With hard money loans, investors don’t need to provide information about their credit histories and incomes. Instead, the lenders accept collateral to lower the risk of lending money.

Investors can use the properties that they plan to buy as collateral for their hard money loans. Since lenders will rarely match a property’s full value, investors may need to use vehicles and other properties to get the amount of money they need to rehab and flip homes.

Commercial Mortgages

Commercial mortgages are similar to the mortgages that most people use to buy homes. With a commercial mortgage, though, the money goes toward buying commercial buildings like restaurants, retail stores, and manufacturing facilities.

Construction Loans

Entrepreneurs that want to purchase existing buildings can use commercial mortgages. Those that want to construct new buildings, however, should focus on construction loans. Unlike most loans that give borrowers lump sums of money, construction loans provide money on a schedule. When construction reaches the next milestone, the borrower gains access to more cash.

Doling out money on a schedule helps protect lenders’ investments. Since interest only applies to the amount that has been borrowed, a schedule can also help lower a borrower’s interest payments.

Merchant Cash Advances

Merchant cash advances work differently from typical loans. Instead of paying a set interest rate, borrowers promise to give lenders a portion of their future sales.

When accepting merchant cash advances, businesses receive lump sums of money that they can use to buy the merchandise they need to keep their shelves stocked.

Historically, lenders have only given merchant cash advances to businesses that rely heavily on credit card payments. The lender could use the credit card statements to determine how much money the borrower owed.

Today, sophisticated banking technology makes it possible for lenders to offer merchant cash advances to a wider range of businesses that don’t take many credit card payments.

Business Lines of Credit

A business line of credit works similarly to credit cards. When a business takes a line of credit from a lender, it has a limited amount of money that it can use. The business, however, does not receive the amount of money in a lump sum. Instead, it uses the business line of credit when it needs help making ends meet, buying inventory, or paying employees. The business only pays interest on the money that it actually uses rather than the maximum amount that it can access.

Comparing Real Estate and Business Loans

LenderMatrix’s directory makes it easy for people to compare real estate and business loan offers from hundreds of lenders.

Borrowers can start by searching for loan offers that match certain parameters. For example, a person who wants to find business lenders willing to lend up to $500,000 can focus on proposals that meet those needs.

Borrowers can also organize their search results by:

  • Required FICO score
  • Prepayment penalties
  • Property types
  • Loan purposes
  • Industry
  • State

Once potential borrowers find offers that meet their needs, they can compare details to make sure they choose the best loan. Most borrowers focus on details like:

  • Interest rates
  • Origination fees
  • Repayment schedules
  • Lender reputations

Since LenderMatrix attracts such a large number of lenders, borrowers have plenty of options to consider. This creates a competitive marketplace where lenders need to keep their interest rates and fees as low as possible. Instead of borrowers begging for money, lenders compete with each other to get more business.

Find a Real Estate or Business Loan With LenderMatrix

Every company needs to borrow money at some point. Traditional lenders, however, don’t always have the products that businesses need to thrive.

Instead of accepting sub-par loans from traditional lenders, companies can turn to LenderMatrix to find real estate and business loans that meet their needs.

Get the funding that companies need by visiting LenderMatrix and searching for lenders that want to work with your business. You don’t even have to open an account until you decide that you want to communicate with a lender in the directory.

April 4, 2019 / by / in