If you have found an ideal property that can be used for rental purposes, money may become a real problem. In these cases, a hard money loan is a perfect solution. Hard money lenders may be willing to lend you up to 100% of the property cost. That will be very helpful, especially if you have no time to wait.
What are the main advantages of using hard money loans?
1. Fast deal closing
Despite the banks, you don’t need to wait weeks or even months until your loan will be approved. LBC Capital professionals process each application up to 24 hours. One more benefit is we don’t require as many documents as banks do. So even if your credit score is not significant, we are still able to help you. However, hard money loans are usually a short-term type of financing – from 6 months to five years.
2. Loan amount
If you need a more considerable loan amount, we are here for you. LBC Capital offers loans from $ 50.000 up to $25 mil and can cover up t0 85% LTV. We offer top hard money loan programs that will be suitable for every borrower (whether you are interested in fix&flip, construction, commercial property, or in the land)
3. Direct lenders
LBC Capital manages its own fund – LBC Capital income fund – we don’t need to borrow money from the bank. Subsequently, we can guarantee the reliability and stability of the deal.
One more benefit is that a borrower establishes a relationship with a lending company by taking out a hard money loan. If you pay your loan back on time, the lending company may offer you a greater percentage on a property or reduce the time frames to receive a loan next time.
What do I need to qualify for a hard money loan?
The main requirement to apply for a hard money loan is having a down payment or equity in the property that will serve as collateral for the loan. The minimum sum ranges from 25% to 30% for residential property and from 30% to 40% for commercial property.
Secondly, the borrower who wants to qualify for a hard money loan has to have cash reserves to make holding costs and monthly payments.
The last but not least requirement is having experience in the real estate market. If you are a newbie, a lending company may require some details on the project. However, we are ready to help borrowers in most cases.
LBC Capital is a direct lender that provides hard money loans for all types of property (commercial, construction, fix&flip, land) up to 85% LTV. If you have any questions or want to apply for a hard money loan, please, call our loan advisor at (818) 761-7234 for free assistance.
Check our recent article on top of the tips on how easy to get a hard money loan here.
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