Yep, NASCAR! Imagine that, you are in the final lap, you are ahead of everyone else, but you didn’t fill up so you ran out of gas. I know, that sounds absurd! That would NEVER happen. But what if it did? Wouldn’t that driver look like the biggest fool alive? He gets this far and didn’t prepare for the simplest thing when he knew (obviously) this was going to be a rush (it’s a race!).
So, I know, odd analogy. But, my point is, if you are an investor, and you go to all this trouble to find a great property, get it under contract and then you wait. It comes to three days before it is required for you to have the funds to close and THEN you decide, I should probably find a Hard Money Lender. Doesn’t that sound a lot like the scenario above, don’t you think you may run out of gas? I want to talk to you today about quick money loans and the fastest way to obtain them.
If you are looking for quick money loans when it comes to real estate you are definitely going to look for a hard money loan. Now let’s talk about how quick a hard money loan can actually get accomplished. It is important to realize all the events that have to occur. One of things that I see quite commonly, that gets in the way of getting a quick money loan or a hard money loan, is the borrower. The borrower is typically the one that delays the process and what a borrower typically does to delay a hard money loan number one is waiting too long to make an application.
So first thing you want to do is give plenty of time to your hard money lender, your quick money lender, to actually get the deal done. Give them as much notice as you have. If you know loan is going to go under contract then get it over to them right away so they can start working on it.
Second thing is the borrowers don’t do the full application. They do bits and pieces of the application. They miss wire and try turning in something that is only partial. A partial application is getting in the way of the process and when you are in hurry on your real estate you can’t delay the process. You need to do it as fast as requested through the entire application.
The third way we see borrowers delay the process in doing a hard money loan is that they don’t provide the necessary documents in a timely manner. You see most lenders are going to need a copy of the real estate purchase project. Most lenders are going to need a title report or closing protection letter. Most lenders are going to need a couple of things and if you can gather those things up and get those to the lender within a day or two at the most it is going to speed up the process.
Now let’s talk about a quick money loan from a lender’s perspective. The first thing the lender is going to need to do is get the application and review the entire application. After that they are going to order the evaluations on the property, get somebody to determine a value. Once that value is determined then it needs to be looked over to see where that value lies and final loan amount needs to be established. When final loan amount has been established then conditions need to be met. Conditions are meaning real estate purchase contract, title work or that type of stuff. Once all that is received then it all needs to be looked over or underwritten and once that happens; docs ordered need to go in and once the docs ordered then the docs are able to get drawn up. When the docs are drawn up then it goes over to the title company.
So as you see the biggest delay in this process actually has to do with elements that are out of lender’s control. Lots of time lender has no control over the title company and lots of times they have no control over the evaluators because most reputable hard money lenders are actually going to use an independent third party evaluator someone that can actually look at the property that is not going to be biased and that is going to take some time. Some times it can take 3-4 days if you are in a rush. If you are delaying on giving the documents it is going to slow the process as well. So when we talk about getting quick money loans and quick hard money it is really important to remember to give the documents, make the full application and know what the time frame is going to be.
Good luck, make the final lap and win the race.
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