Money is the lifeblood of any business, and your ability to get funds or loans when you need it most is what keeps your business afloat. Unfortunately, not everyone is good at meeting their monetary needs, and the ones who have somehow managed to do by getting approved for loans end up being frustrated in a long time-consuming process. Moreover, even the high credit scores and plenty of income may not guarantee the peace of mind or at least lesser time consumption. If you are stuck thinking that there is nothing you can do about it, then much to your surprise, there is something called Hard Money lenders New York providing hard money loans who come to your rescue while you have been unsuccessfully trying to get approved for traditional loans.
How Hard Money Loans Are Different From Traditional Loans
Hard money loans are unlike traditional loans, which take a long and time-consuming process for getting approved. One of the main reasons for hard money loans being lesser time consuming and painful is because unlike traditional loans, these are based on collateral securing the loan. Hence hard money lenders are less concerned about borrower’s ability to repay as they have the option of taking the guarantee and selling it to get their money back. These are the ones who are not looking for perfect credit scores and income history as they are more interested in the value of the collateral than your financial position. These loans are generally short-term loans and may last from one to 5 years, and these loans usually have higher interest rates as compared to traditional loans.
Hence, if conventional lenders have declined your loan approvals as you may not be able to meet credit scores or don’t have a good income history, then there is not a single reason you should not go for hard money lenders New York, unless if you have long-term plans or goals. These loans work best if you have short goals to meet in your head, as the interest rates are generally higher than conventional loans.
When to Use Hard Money Loans
- If you have a real estate investment deal in hand and do not want to miss the opportunity to make the best of the agreements by wasting time and going through the lengthy and cumbersome bank loan process.
- Conventional lenders have declined your loan approval requests because of poor credit score and income history
- Have short time real estate business strategies such as fix and flip of houses in mind, which works on the premise of buying a home with the intent of selling it quickly after fixing and smelling the profit opportunities.
Conclusion: Money is the lifeblood of any business, and one’s ability to get funds or loans when he/she needs them most is what helps the business keeps afloat. While everyone wants to have quicker approval for loans, not many are able to approve their loans quickly because of low credit score or poor income history. This is where hard money lenders New York come into the picture as these are the ones
