Hard Money Lenders In Florida
- New Construction
- Property Rehabs
- Equity Cash Outs
- Property Purchase
- Fix and Flip Loans
Understanding The Facts About Hard Money Lenders In Florida
Real estate loans just as other types will typically require enough proof to the lending institution that the borrower is capable of repaying the loan and the property must have sufficient value. Sometimes this means that means that we will need to know the borrower’s credit score, and other facts that help the institution justify the loan. But, even if you have some blemishes on your credit we will take in to account the value of the property and the loan amount you are requesting to make a final decision. The value of the property is the most important part of qualifying for the loan. Here we’ll take a look at the facts about hard money lenders in Florida.
How Are Hard Money Lenders Different?
There is a fundamental difference in the approach to making a loan that hard money lenders use. Neal Business Funding will utilize appropriate collateral in place of other factors typically used when deciding on whether to make the loan or not. The collateral has to be sufficient enough so that should you fail to repay the loan for any reason then the lender will be able to take control of the collateral and sell it for payment in full.
On average, hard money loans are shorter-term loans than some other types. An example of this might be a loan that is for one year up to five years. Interest rates are can be higher than with traditional loans and for that reason, therefore this type of loan is usually of shorter length. The higher interest rate helps to compensate the lender for the added risk they’re taking for someone getting this type of loan.
If This Type Of Loan Is More Expensive Then Why Use It?
There are a variety of reasons why a borrower may be unable to get a traditional loan. Even if they have good credit and sufficient funds to repay the loan they may be wanting something unconventional or for traditional reasons they may simply be unable to get a typical loan. There is also the need to get approved more quickly which can almost always be done more easily using a hard money loan.
Since a hard money lender is mainly concerned that they’re going to have the loan collateralized sufficiently then they’re able to move on making the loan more quickly. Even though these lenders don’t want to end up taking possession of the collateral to make good on the loan it still allows them to make faster decisions because they know that one way or the other they will be able to get their money. For that reason, they’re not as concerned with prior payment schedules and income verification.
If you make more than one of these types of loans and develop a relationship with Neal Business Funding then this type of loan can be extremely fast. There is a very common thing in real estate loans where an investor finds a property that they want to move on quickly and having a good relationship set up with a hard money lender that can make the loan fast is quite practical. In fact, many real estate investment deals are going to be flipped fairly quickly and that makes these type of loans not only ideal but even fairly practical.
These Loans Are Highly Flexible
In most situations, a hard money loan will be more flexible than other types of agreements. This type of lender will seldom use standardized processes utilized by traditional lending institutions. They take a look at every deal individually and they work out a loan that works for both the lending institution and the borrower. There are even some situations that may allow you to have a custom repayment schedule or other factors built in. Very often these lending institutions have policies that are much more relaxed than others.
What Type Of Situation Would A Hard Money Loan Make Sense With?
The simplest answer to this question would be when the needs of the borrower are short-term. This is one of the reasons why it is utilized by a great many real estate investors, especially when they are flipping properties. They simply need a sufficient loan long enough to get the property, do needed improvements, and then quickly flip it for a profit. When they sell the property they repay the loan.
It is very common in this type of situation that the real estate investor will sell the property in a year or less and repay the loan in full in that time frame. There might be a situation where a borrower would want one of these types of loans more long-term but that would be unusual. To make it work for all concerned it would have to be a specific situation that was practical.
How Can You Find Reputable Hard Money Lenders In Florida?
Neal Business Funding is a great place to start for a hard money loan in Florida. We make loans for properties that are occupied by the owner as well as for investment properties. We offer loans with recourse and non-recourse.
We have loans available in the range of $100,000 up to a million dollars and more. Neal Business Funding has several different programs to choose from. We also offer bridge loans up to a million dollars that can be used as working capital and also make loans for construction, international financing and more.
Another type of loan we offer is a line of credit for fix and flip home purchases. In fact, we can arrange for lending for amounts of half a million dollars up to over 50 million dollars. With good credit and the right deal, we can even give low fixed interest rates. Terms of 12 to 24 months are quite common. Some of the properties that they lend against include townhouses, single-family homes, and multifamily properties.
Premiere Hard Money Lenders In Florida
If you’re in Florida and looking for a hard money loan then check out the site at nealfunding.com or call 315-699-4703. Their website has lots of information regarding the different types of loans that are available and the amounts, as well as various terms and options. We may be just the perfect place and match for your needs.