For quick cash and hassle-free transactions, a private hard money lender is the way to go. If you are planning on flipping a property quick the high interest rate associated with private lending should not be an issue for you.
Here are just a few of the reasons you should consider using a private hard money lender:
• When paying cash for bank owned properties, showing proof of funds is usually required by the bank to even consider your offer. That is where private hard money lenders can come to your rescue. Not only will they be able to show proof of funds, but they will have the funds available at closing on your behalf.
• The conventional loan can take as long as 30 days to close because of the process to verify bank required documentations. However, a standard cash deal will usually take approximately 2 weeks to close.
• Investors are typically self employed and are not paid by paychecks, which can make it difficult, sometimes impossible, to verify income. Private hard money lenders won’t require you to prove what you made the year before.
• Private hard money lenders do not evaluate credit history when making loans. Since most of us have had periods of our lives that we have been late paying bills or perhaps just not able to pay them at all, when banks at your credit history, those times will make a bearing on their decision to approve your loan and at what interest rate.
When paying cash provided by a private hard money lender, there are no rules to follow like HUD and FHA sponsored loans such as seasoning issues or any extra stipulations. The banks state what they’re asking and you make your offer, simple as that. The next step will be a quick hassle-free closing.