Have you tried all self-proclaimed hard money lenders in your town and you are unable to find much difference between the guidelines of these lenders and conventional lenders? Are you in search of a genuine hard money lender, who could fund you in as less than 7 days without much hassle?
If you have answered “yes” to above questions, then you have come to the right place. This article will help you in finding the answers to your questions in an easy way
Before getting into the discussion zone, let us first deal with the 800 pound gorilla in the room…
So, what are the factors which make a “real” hard money lender company?
There are some basic differences between the so-called and real lenders, which you need to understand first. Apart from that, there are some solid reasons of choosing a true hard money lender over a false one Money Lender In Singapore.
Difference #1 – A true hard money lender isn’t interested in your credit history. A real lender will never put a condition that if you don’t have a good credit history, you won’t get financing. There are many hard money lending companies, which will say that they don’t care about your credit but at the end of the day, they’ll say that their minimum credit score requirement is 600.
The reason behind this is these lenders are packaging their loans for Wall Street or banks, so ultimately they’ll have to conform to all the legal requirements set up by these traditional lenders, which can’t be afforded by a person who has a bad credit history.
Difference #2 – On the other hand, a real lender ONLY cares about your collateral you are willing to invest in. They will get your property evaluated by professional independent evaluators, who will look at your property without any preconceive notions. They will give a purchase price, repair cost and estimated after repair value (ARV) of the property to the lender and if they find it good enough, they will fund you there and then.
Whereas, the imposters will put your credit score, job history, salary and other finances at the top of their loan requirements list before offering you a loan, which is exactly same as conventional lenders work.
This shows that there is a huge difference between a real lender and an imposter.
Now, coming back to the main question, how to find a genuine hard money lender?
The basic predicament here is that there are very few of them in the real estate investment world. You can start finding them via internet by looking at their guidelines. I would also like to introduce a precious resource know as sgtopchoice.com.sg to you, which have one of the most easiest hard money loan options available online.
First off, it is very important to realize that all lenders are not equal and they don’t work under the same terms and conditions.
For every particular need, there is a particular money lender. You can’t expect that anyone who wants to lend money will lend you, irrespective of your need.
There are different types of lenders in the market. Some are related to real estate and some are related to business. So, your first step before asking for lending is to find the right lender for your situation.
Instead of talking to every lender and wasting each other’s time, it is better to search few right lenders and then, find the best one amongst them. It will make things easier and much faster for you.
Let’s discuss different money lenders as per your loan requirements:
- Title Loan – It basically means that you have title against which you are trying to get a loan. That title could be your car or some expensive jewelry. You will go to the money lenders who deal in title loans and sign a contract that you will give their money back in certain period of time and if you are failed to do so, they will take your title away from you.
- Pay Day Loans – If you are in need of quick cash and you are doing a good job. Then, you can go to these lenders and asked them to give you money and for that, they can take the pay check you will get at the end of the month.
- Signature Loans – These loans are completely dependent upon your credit history. If you have an excellent credit history and your bank account is free of any bad credit history, then your bank can give you this loan on good faith.
- FHA or Conventional Loans – This comes under real estate and are usually owner-occupied homes or rental properties. For getting this loan, you need to have a very good job and credit history and you will need to go through a lot of documentation SG Top Choice.
All of the above loan types need you to have a good credit history, job security and no judgments or tax liens or bankruptcy.
But what if you don’t have all of this or what if you are self employed person? Here come hard money lenders.
Hard money lenders usually give a lot of space and options to the borrowers as they are privately held and don’t follow the typical rules and regulations like other lenders.
Finally, if you want to choose the right hard money lender for you, then first you need to look at their funded deals. Just go through how any deals they have funded till now. That will help you understand that there is actual money involve in it and they are real.
You can easily find this information on different hard money lenders’ websites under funded loans or success stories, which gives all the details about that particular property such as purchase price and loan amount funded.
This can assure that these lenders are real and they have actually lent money to people in the past.