Pros And Cons Of Hard Money Loans
To schedule a free loan consultation, please call (254) 230-0012 (for loans in Texas) or (503) 222-4466 (for loans in Oregon and other states).
In the diverse landscape of lending and financing, hard money loans (including ours) occupy a unique niche. Often provided by private investors or companies rather than traditional financial institutions, these loans can be a valuable tool in certain situations, particularly in real estate ventures. But there can be drawbacks t hard money loans, and you need to choose your hard money lender carefully.
Pros of Hard Money Loans
If you need money, hard money loans can provide a great solution – sometimes the only solution. Below are some of the advantages of hard money loans.
Speed Of Approval And Funding: One of the most significant advantages of hard money loans is their rapid processing time. Unlike traditional loans, which can take weeks or months to process, our hard money loans can be approved and funded in a matter of days. This speed is crucial in time-sensitive situations, such as auction purchases or pursuing real estate opportunities.
Flexibility In Terms: As hard money lenders, we offer more flexible terms than most traditional lenders. We can provide loans for unique and unconventional projects that don’t meet the strict, boilerplate criteria of traditional banks.
Less Stringent Qualifications: In the approval process for our hard money loans, we typically focus more on the asset in question rather than the creditworthiness or income. This aspect is especially advantageous if you have a less-than-perfect credit history or unconventional or unproven income sources.
Ideal for Short-Term Needs: Given their structure, our hard money loans are particularly well-suited for short-term projects, in which you plan to repay the loan quickly.
Cons of Hard Money Loans
Depending on your circumstances, there can be disadvantages to hard money loans.
Higher Interest Rates and Fees: Our interest rates and fees are competitive, but they might be higher than the interest rates and fees on a traditional loan.
Short Repayment Terms: Our hard money loans usually have much shorter repayment terms (typically within a year) than most traditional bank loans or SBA loans. The loans would benefit you the most if you only need money for a short period of time and have a clear strategy for repaying the loan.
Property as Collateral: Hard money loans are secured by the property itself. If you fail to repay the loan, you risk losing the property to foreclosure. This aspect adds a layer of risk, if you’re unable to secure longer-term financing or sell the property.
When to Consider a Hard Money Loan
Given the pros and cons, hard money loans are best suited for certain scenarios. They’re ideal if you need quick financing to buy a property, particularly in competitive markets where a fast close is required. Hard money loans are also beneficial if you plan to build, renovate, or flip a property within a short timeframe. Additionally, the loans might be an option if you can’t qualify for traditional financing because of credit issues or unconventional income sources.
Why Use TriTalent Funding Group
At TriTalent Funding Group, we’ve been providing hard money loans for real estate since 2004. Not all hard money lenders are alike, and we pride ourselves on being among the best. Our interest rates and fees are competitive, we can quickly approve and close loans, and we don’t have any pre-payment penalties for an early pay-off of your loan.
Types Of Hard Money Loans
Our primary types of hard money loans include:
For more information or to schedule a free loan consultation, please call (254) 230-0012 (for loans in Texas) or (503) 222-4466 (for loans in Oregon and other states).
Please note that we provide hard money loans throughout Texas, including: Dallas-Fort Worth, Austin, Waco, and San Antonio. We also provide hard money loans in Oregon, Washington, California, Nevada, and Arizona.