According to the team at californiahardmoneydirect.net. borrowers still overlook the advantages of hard money cash and lending.
However, savvy borrowers are increasingly using hard money as a smart way of financing. Let’s take a look at why experienced borrowers prefer hard money to traditional loans.
Quick Way To Access Finance
If you have ever applied for a traditional mortgage, you will know the process is best described as “gruelling.” Not only does it take you a long time to complete the process, but it is also very complicated.
When you contact a bank, you are asked to provide endless pieces of paper and attend appointments with administration. If you are unlucky, you may have to take time off work or spend time away from your business.
Applying for a hard money loan often means that you only have one point of contact. The person who is helping you wants to make it easy for you and will quickly hook you up with the right source of finance.
Hard Money: Is It Really Expensive?
Is hard money really expensive? The answer to that question is both yes and no.
Yes, you may pay a higher rate of interest on hard money when compared to a traditional loan. However, there is one major advantage.
Hard money is much more flexible. Most lenders are happy to set up flexible repayment schedules. If you want to pay back more, or pay off the loan quicker, you are less likely to occur penalty fees. Check out your average mortgage agreement, and you will find that it is packed with ways of making extra money from you.
When you pay back a bank mortgage, the amount of interest you pay on a 20 or 25 year repayment period is staggering. The truth is that hard cash can cost you less.
Can You Get A More Generous Loan With Hard Money?
That is another factor that you should consider. Of course, it is important that you hook up with the right lender, but you can often borrow a larger amount of money with a hard money loan.
Yes, you will still have to pay a deposit on your property investment. But, many investors who use hard money for financing purposes, end up paying a smaller deposit.
That means you will have extra cash available to fix up your new investment or move onto the next project.
It is time we stopped being afraid of hard money. Using hard money in the right way can turn you into a savvy investor.