Hard money loans are a type of financing that allows borrowers to access funds quickly, without the need for traditional bank loans. They are typically used for real estate investments and are secured by collateral such as an existing property or other asset. Hard money loans can be beneficial if you’re looking to make a quick investment.
Fast Approvals
One of the main differences between a hard money loan and a traditional bank loan is the length of time it takes to get approved. Hard money loans are often processed and approved quickly, sometimes in as little as three to five days. Traditional bank loans can take weeks or even months to process, which makes them less attractive for those looking to make quick investments.
Borrower-Friendly Requirements
Another difference between hard money and traditional bank loans is the ease of qualification. Since hard money lenders are not subject to the same strict regulations as banks, they can often approve borrowers more easily than traditional banks. However, hard money lenders may require additional collateral to secure a loan – such as another property or equity in an existing investment – so be sure to review their guidelines before applying.
Using Hard Money Loans
Finally, it’s important to note that hard money loans are short-term solutions and should only be used for specific investments. Most hard money lenders typically require repayment within two years or less, so borrowers need to make sure they can make regular payments throughout the loan. Borrowers must also ensure that they have a solid exit strategy in place to ensure they can pay off the loan on time and avoid defaulting.
In summary, hard money loans can be great tools for those who need fast financing for investments. If you need a hard money loan with great rates and fast closings, contact the team at Synergy Commercial Funding today.
Are you looking for financing options for your business? If so, Synergy Commercial Funding is ready to help. We offer a wide range of commercial finance services to help businesses of all sizes achieve their objectives, whether it’s purchasing new equipment or purchasing a new commercial property.
Interested in creating a second line of income just by talking with your existing network? Want to help the economy grow by helping businesses around you grow? Think about becoming a Synergy Commercial Funding Partner. Visit our "Referral & Broker Program" to learn more.