Real estate investors use hard money loans because it is a quick and easy way to secure financing. It is also more flexible and requires less stressful procedures.
Hard money loans are asset-based and secured by a mortgage, so they can be approved faster than a loan from a bank. This makes them a better option for a real estate investor who needs to acquire property quickly or who is unable to secure a conventional bank loan.
There are many hard money lenders that offer these short-term loans to individuals purchasing residential or commercial real estate. Sadly, one of the many obstacles new investors, especially in Washington, face is finding good hard money lenders in Washington, D.C. to finance their projects.
In this piece, Hard Money Bankers, a top hard money lending company in Washington shares important qualities borrowers should watch out for in a Hard Money Lender in Washington, D.C before obtaining a hard money loan.
A prospective borrower should carry out a background check on the reputation of the lender to know if they are trustworthy or not. Find out whether or not they change their terms in the course of the transaction
The terms of the contract as presented by the money lenders must be fair to both parties. Although the interest rates on hard money loans are generally higher than bank loans, borrowers should still consider working with lenders that will offer them a competitive advantage and a win-win situation
The lenders must be proven to be able to close deals quickly. Time is of great importance in real estate deals, thus, it is better to find a hard money lender that will attend to your loan application as soon as possible
A good lender should be diligent enough to consider all nooks and crannies of an application and make modifications where necessary before approval. This helps both parties to be on the same page and eliminate future conflicts.
Diligent hard money lenders will only approve loans on deals which they believe is profitable to the borrower. Therefore, be weary of lenders that are too quick to give loans without taking a thorough look at your application.
This is one of the most important qualities. An experienced hard money lender will definitely possess all of the above-listed qualities. A borrower should endeavor to transact with an experienced hard money lender who can offer creative professional advice in addition to the financing of the project.
Hard Money Bankers is a leading hard money lending company with offices in Washington D.C., Maryland, Virginia, Pennsylvania, Delaware and New Jersey. With over six years of experience in hard money lending, they possess all the five qualities discussed above and are experts in the field of money lending.
In addition, this company is well known among real estate investors and remains committed to offering top-notch services to its clients while maintaining the highest level of honesty and professionalism.