Are you looking to buy an attractive property in the commercial or residential space that doesn’t qualify for a bank loan? If so, you can consider hard money lending, which is becoming increasingly popular, for obvious reasons, in the real estate market.
Often, buyers want to invest in a property that fails to meet the lending requirements of banks. In such a scenario, buyers have two choices: let go a great opportunity or approach a licensed money lender.
However, it is not only people who want to invest in real estate who approach money lenders. Someone who is staring at bankruptcy and is behind in paying a mortgage could use services of a money lender to come out of his current financial mess. A money lender can also prove helpful when you are facing a foreclosure.
There are three main benefits of hiring a reputable money lender.
Many a time someone who invests in real estate finds that he needs more money to purchase a property than he originally thought. In such an instance, the person will not be in a position to buy a property that he wanted to. In case you are finding yourself in a similar position, you might be dangerously close to bankruptcy.
Through a reputable money lender, you can get the property at a deflated price. You will be able to own the property more quickly, even as you are still paying monthly installments for the loan taken. This will help boost the credit rating of yours, besides ensuring that you don’t fall headlong into the abyss of bankruptcy.
Banks usually have very stringent rules for providing loans for purchase of the commercial real estate. Even when a property makes much financial sense, the bank might reject your application for a loan. However, thanks to services of money lenders, you can ensure you don’t lose a property which you believe will give you handsome returns in future. Unlike banks, hard money lenders don’t rely excessively on your credit score. If the investment is financially viable, more often than not they will be willing to fund the project.
If a bank takes too long a time to process your loan application, you can lose the property you want to buy. Some other party might make a comparable offer to the buyer and seal the deal.
Traditional banks have a lengthy checklist for giving out a loan. They take their own sweet time to ensure all loan criteria are met. They are not bothered with speed so much as with ensuring there’s nothing in your application or bank statement or credit report that might raise a question mark over your ability to repay.
With private lenders, things are different. Of course, they check if the borrower’s financial capacity but, as said above, their main concern is the financial viability of the investment. Therefore, a licensed moneylender Singapore will give you a loan quickly if the project in question is a sound one.