Hard Money Bankers, LLC is a professional group of legal and mortgage experts that have positioned themselves as one of the leading lenders hard money in Virginia in the Mid Atlantic region. They also service real estate investors in Washington DC and Maryland that are looking for funds to make quick profits on hot property deals. When the right investment opportunity presents itself there is not always time to secure a conventional loan. The approval and funding process can take too long for some deals that need to be closed quickly. This is where private money or special circumstance financing can make the difference between losing a great investment deal or making a hefty profit on it.
Real estate investors that work with lenders hard money in Virginia must know exactly what they are getting themselves into and have a solid business plan for repayment of the loan. Being approved for such a loan does not just mean money will be made available quicker than a conventional loan. It means the borrower is making a commitment to pay back the loan within a much shorter period of time at a considerably higher interest rate. lenders of these loans are not looking to tie up their money in loans longer than six months to two years hence the higher interest rates. Credit scores of the borrowers donât typically come into play with these types of loans. The lenders are more interested in the current and fixed up value of the residential or commercial property in question. The point is for the borrower to get fast funding so they can purchase the home, fix it up, and sell it quickly so they can pay the loan back. If done correctly the lender gets their money back quickly so they can invest it again in another deal and the borrower makes a nice profit from the resale of the property.
In some lenders hard money in Virginia circumstances the borrowerâs purpose may be to refinance the property after purchase. In this case the lender would need to check the borrowerâs credit to make sure they are able to secure the financing in order to pay off the original private money loan. Such quick financing is not available for the purpose of securing funding for a primary residence or rental property. It is only available to people with a solid plan of buying a commercial or residential property with the intention of reselling it soon after purchase.