Since 2008, conversations and questions about the pros and cons of hard money loans have taken over the real estate investment world. Some private investors are still confused about the nature of these loans, while others have jumped on the bandwagon and partner with hard money lenders to fund every project. The truth is hard money loans are relatively simple investment tools with quite a few benefits that often go overlooked. Here are the facts:
Many lenders, Intrust Funding included, refuse to finance investment properties that they do not believe will be successful. In the instance that an investor is rejected because of the property, it is a good idea for the investor to either request a second opinion or not purchase the property at all. While it may seem preferable to get a second opinion, the lenders that advise against purchasing a property are working in your best interest and are not interested in attaining your collateral, but rather in funding a successful deal.
It’s the bottom of the ninth and there are two outs. Who is batting for you? You’ve done your research, your financial documents are ready, and you’ve found the investment of your dreams, but how do you decide who to trust to back you financially? Here are key characteristics to help you find a lender that’s right for you. Hit this one out of the park! Pro Tip: Hard Money Lenders with High Default Rates Should Always be Avoided!