As A Real Estate Agent, How Can Hard Money Help Me Sell More House?
How many houses have you shown in the past year, only to have the deal fall through because a prospective buyer does not qualify for a conventional loan? Hard money may be just the solution you need.
Hard money lenders base loan approval not on the creditworthiness of the borrower, but on the loan-to-value ratio of the deal. This is an especially good choice on “fixer-upper” properties. The loan will be structured on the after-repair value of the property. Often-times, the repair costs can be paid by the loan, while still keeping the loan-to-value ratio at an acceptable 60 – 70%. This allows the buyer to purchase the property and fix it up without a huge investment.
Another problem often experienced by real estate agents is that deals may fall through simply because a buyer with a good credit score can’t get a conventional loan approved in time before the opportunity to buy a particular property is gone. Whereas conventional financing may take as long as 1 month or so to be approved, hard money loans can be closed in as little as 72 hours or less.
The hard money lender isn’t interested in your client’s credit history, savings account balance, or mother’s maiden name. They don’t need to waste time verifying all of that. All the lender wants to know is how much the property is worth and how much money the buyer wants to borrow. Often, the hard money lender is so familiar with the properties in his or her area, an appraisal may not even be required.
If you are looking for ways to expand your real estate business without spending tons of money on marketing, you owe it to yourself to look into hard money lending. You can help your sub-prime clients get loan approval and assist all of your clients in getting through the loan approval process more quickly. Your clients will think you’re a genius, and you’ll be amazed at how quickly your business expands!
Hard Money Bankers