When you need investment capital and you don’t have good credit you may find yourself in a bind to find capital from traditional forms of financing like you would get from banking institutions. You may even own a home with plenty of equity in it, but because of credit problems the bank won’t approve you for a loan. Does this sound about right? Lately more and more Americans are running into the issue of not having investment capital ready when a good investment comes along. Any investor knows that a good investment does not come along too often. There are options for utilizing the equity in your property as collateral instead of your credit score and it is called a hard money or private money loan. Hard money loans can provide you with instant investment capital you need for investments, upgrades, paying off bills, getting out of a distressed situation or any other reason where you need capital fairly quickly.
When you cannot use the bank to fund your investments because of horrible credit or a large revolving debt there is always a private lender willing to help you get the capital you need. Hard money loans are given to a borrower based on different criteria than traditional lending by the bank. Instead of looking are your credit score or how much debt you currently have they will be waging their investment on your properties value. Private money lenders often look at the property, but they also may look at how you plan to pay back the loan. Of course they would like their money back with interest instead but if your investment flops there is always the option known as an exit strategy which is how you plan to pay your debt if things go horribly wrong.
How badly do you need your investment capital? It may seem a little outrageous to wage your home or commercial property on an investment but there is a risk involved with any investing. Remember a good investment opportunity may come once in a lifetime and private lenders may be a great source of funding for those opportunities. When you can’t qualify for traditional financing from the banks, private money lenders may be able to qualify you and get you the capital you need. Even if you need investment capital to flip a property and you have a small window of time to get it done, a private money lender can be well worth the effort.
If you are a senior over the age of 62 you could opt for a reverse mortgage since you do not need good credit to receive them and you could still keep the property while receiving the loan. However the majority of investors are not over the age of 62, so this option is not feasible for most investors. That is why a hard money loan is the best option for borrowing cash with bad credit if you cannot qualify through a bank. You can receive a large amount of liquid funds immediately for your investments without ever having your credit score be a favtor.
Hard Money Benefits
•No age requirements
•No credit checks
•One of the most simple loans available
Finding a hard money lender in your area can be as simple as going online and searching Google but you should check your options since these private lenders all offer different payment options, plans and interest rates. It’s in your best interest to look around to see what lenders have the most favorable interest rates so that you can make an educated decision based on the lending criteria. Speaking to a broker or hard money loan specialist is the best way to get the best loan amount and interest rate for your investment.
Receiving investment capital without any type of credit can be simple if you currently have equity in a property, are putting down a significant down payment on a home or if you are using some other high priced commodity as collateral for the loan. Private money loans are a feasible option if you are in need of additional capital and can’t get financed through traditional methods. You can contact a hard money loan specialists to find out how to qualify, how much you can qualify for and how to get started with the application. personal loan