Hard money loan Facts

Hard money loan Facts:

Hard money loan means Non bankable loan. The loan sanction based upon the value of the property

For getting this type of loan you need to be prepared. Preparation will eliminate all confusion and make you confident about taking the loan. Also it will be increase the possibility of getting the loan.

1.      Hardmoney loan is collateralized with the property so that you have to take a right decision for selecting the property what you want to mortgage for the loan. Actually the hard money lenders always want to ensure that the property they are taking instead of funding the loan amount should be a safe investment. So if you have a specific property for which you are interested to obtaining a loan

2.      Before taking a loan you should take a plan of refunding the loan money. Because hardmoney lenders are want to be confirming about your repayment of the money. Their one of the chief view about you is you have the ability to repay the money or not if they found that may be they will not invest the money. So it’s important for you to make sure how will you repay the loan.

3.      However a hard money loan is asset based. Thereafter it’s important about your revenue, possessions, and credit. So proper documentation is essential for the loan. All of the document will clear your position and indicate the specific information what the lender wants. So collect all the documents with proper information.

4.      Make a plan of renovating the property with cost estimation and thus you will confirm about the loan amount.  You can take a help of a construction company or contractor to get a figure of money require for the renovation of the property. Also it is essential for the lenders to know that in which way you are going to spend the money.

5.      Also take a comparative image of the other property in the same area both sold recently and going to be sold. This will give you a confidence about taking the loan. And from this image you will get a price of your property. Thus you can calculate how much fund you can get from the lender. Usually the lender provides 50-70% of the money of a property price. But if you have some strong point you can get a maximum 80-90% of fund. So it is better you calculate a rough figure before the loan and be clear about the amount.