I mean we were into a lot of situations with people who submitted application and then once the application is submitted they don’t do any thing else and the key to getting a fast hard money loan regardless of what lender you are working with is to get the documentation that they require to them in a fast manner. If YOU want to get it DONE on a quick basis, lenders definitely require documentation before you close.
Typically hard money lenders are going to need to have a title report or a closing protection letter or information regarding the insurance on the property. In case you are buying the property in a corporate name, they will need to have articles and corporation which shows that you can sign on that property and such sort of stuff. WHAT need to be done at your part is you are going to submit some sort of application that may be a lengthy drawn out process or may be something simpler, you know three or four page form. Once you submit that application the next step in the hard money loan is to actually have an evaluation done on the property where some expert goes and determines what the property is worth actually or determines how much they are going to lend you on the property in case you are going for Rehab Loans.
Once that has happened the next step is then to gather conditions of the title report, hazard insurance and corporation name and after that they actually would fund the loan and you go and sign so you may say it’s a generic process for any type of hard money loans. If you are trying to get QUICK HARD MONEY LOAN, the best thing to do is to actually get the information from the lender during evaluation phase. We have seen a couple of clients doing excellent job. These clients put in their application and on the same day or next day they gather the conditions. Within 72 hours they completed all the required information for their hard money lender. This process is quite generic for hard money loans except one or two exceptions which may be rare as well in most of the cases.
What SUCCESSFUL real estate investors did is they put the application within three days with all the necessary things for close in. When evaluations came back to us as hard money lenders for review, we want to know exactly what we can lend in line with what they are hoping for and loan will be hold. All the conditions were already in and we said Great! It will take us about 48 hours to get this thing wrapped up and close and they said no problem. So within five days or less they actually went from making an application to actually having their deal funded. I mean that is awesome.
The biggest delay in having faster is typically at the BORROWER’S END because the borrower is waiting too long to complete his paper work. So if you are looking for fast hard money, the first important thing is to find the right hard money lender but the second equally important thing is to look is in the mirror and make sure that you are completing things at your end within the time period given by your hard money lender so that you can have a fast hard money closing.
2 comments:
Your blog is fine. It's just that the topic is more on money related.
Hard money loans are expected to be the primary source of funding for real estate deals over the next three to five years. With banks tightening their lending policies due to the recession, more and more investors are turning to hard money lenders for financing. This has resulted in stiff competition for hard money loans, making it doubly hard for many investors to secure financing for their real estate deals. Go visit www.rehabhardmoney.com the number one source of hard money.
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