Why Use Hard Money?
Why use Hard Money? Hard money is not your enemy! It can be your strongest ally! If you are looking to build up your real estate portfolio this year, here are 3 reasons to justify the use of hard money.
Whether you are looking for fast turn times, want to present a stronger position with your offer, or have an unfavorable credit history, hard money lending may be a great choice for you or your team. From our experience, using hard money is an asset when you are competing against cash buyers or you cannot rely on your credit history to go the conventional route.
Traditional lenders typically look at creditworthiness and property assets when qualifying a borrower for financing. The worst part of using a traditional lender; TIME! Hence, the amount of time waiting for qualification, in the majority of cases will result in no financing after it all is said and done! Especially if you don’t meet the qualification standards! Valor Lending Group thrives in situations as described and will provide the best available Hard money loans across the board!
In hard money scenarios, lenders look closer at the asset, more so than the creditworthiness of the borrower, thus allowing for a faster closing and the property desired!
THE 3 REASONS TO USE HARD MONEY:
1. FAST TURNAROUND TIME
The application and approval process for a standard bank loan or mortgage lender can be time-consuming and tough. Most of the traditional bank loans can take 30 + days!
The process of applying for a loan involves filling out multi-page forms and submitting supporting documents. With the number of requests a traditional bank receives, it can take weeks for a lender to respond or approve the request. By the time the bank provides any feedback on your qualification, the property you want might be off the market.
On the other hand, applying for hard money loans is much more efficient and streamlined. Pre-approval can occur within minutes of speaking to a lender! In addition, funding typically happens within a fraction of the time it can take a bank. Some of our hard money loans at Valor Lending Group have closed in as little as 7 days! Of course, every scenario is different therefore timelines may vary.
2. STRONGER POSITION WITH YOUR OFFER
If a property is in high demand, the investor that has a hard money loan has the most to offer. Why? Because cash is KING! As mentioned before, hard money loans are processed faster and there’s less red tape. Overall, this means you have cash in hand for a stronger offer and there’s less likely to fail!
In addition, if a lender turns a buyer down for a loan, the deal is dead. By using hard money lenders, you have a quick financing option, allowing you to save the deal and buy the property.
3. CREDIT HISTORY VS PROPERTY VALUE
When you want a borrow from a bank or mortgage lender, the bank usually analyzes your credit scores and income history to decide if they will approve your request.
With a hard money loan, lenders focus more on the value of the property, instead of looking at credit and income. The property becomes collateral for the loan, in case you default.
This allows you to get a loan even if you don’t have the strong credit and income that banks require.
HAPPY INVESTING!
Not sure where to get started with investor financing?
These were 3 reasons to use hard money for your investment property needs. I hope you found this information! If you would like to know more about what we can do for you, please send me an email or give me a call!
Bonus information!
OWNER-OCCUPIED BRIDGE LOAN HIGHLIGHTS:
• Finance the purchase of your new home with a loan secured by your current and/or new home
• Maximum combined loan to value of 65% (higher on a case-by-case basis)
• 11-month term
• No prepayment penalty
• Origination fees starting at 1.5 point
• No Debt-to-Income Ratios
• No tax returns, pay stubs, etc. required.
• Loan can be closed in 10 to 14 business days
• Rates starting in the 8s
Needs for Quote (email Leo the following):
- Property Address:
- Purchase Price (for Purchase):
- Property “as is” Value:
- Current Balance (for Refinance):
- Total Monthly Rents (confirm if long term or short term Airbnb leases):
- Monthly Taxes and Insurance:
- Approx. Credit Score:
- Vesting in and Entity or Individual name:
Other Programs Available
- Hard Money Loans
- Fix and Flip Loans
- Commercial Loans
- Save your Deal | We Save Deals
Please give me a call if you have any questions and we look forward to the opportunity to serve you!
Valor Lending Group also offers literally every loan in the book! Please do not hesitate to call on me for any scenarios. I look forward to an opportunity to demonstrate my prompt and professional service.
Recap of our Loan Products:
- Hard Money Loans (20% down / minimal documentation) Typically Fund in 7-10 days.
- Stated Income Loans (Great for business owners and self-employed) No tax returns!
- 100% financing is available (we can cross collateralize other properties if there is enough equity)
- Valor VA Home Loan 100% financing up to $1.5MM
- Rental Property Loan – No tax returns or DTI calculation! Based on the subject property cash flow – No DSCR Coverage is needed!
- Flipper & Rehab Loans (Flip a property with one of our many options)
- 2nd Position Loans up to $5mm
- Raw Land & Lot Loans
- Ground-up Construction for spec homes, custom homes, and commercial ground up.
- Farms, Vineyards, Ranches, and Agricultural Properties (25-30% down)
- 5% down Jumbo’s with NO MI up to $2mm / 10% down up to $3mm
- Manufactured Housing / Mobile Homes (20% down / 600+ credit score)
- Acreage Properties
- Commercial Loans up to $500mm
- 3% & 5% down Conventional Loans– LPMI (Lender paid mortgage insurance)
- Foreign Nationals Loans (no social security or residency required)
We also offer:
- Conventional Conforming Loans (under $510,400)
- High Balance Conforming (from $510,400-$765,600)
- Jumbo Loan Financing to $10 Million / Super low rates! / 10% down Jumbo to $3mm
- FHA, USDA
- Reverse mortgages up to $1 Million Value
- Cash-Out Refinancing
**Rates and terms subject to change without notice
If you are in San Diego, you can find us by searching fix and flip lender near me.
