For those who have not used the services, when they hear about ‘hard money’ loan, they most likely think about sinister lenders, out to make profits from unsuspecting customers. The truth of the matter, though, is that there is nothing dangerous about hard money lending. You can get more information from Evoque Lending on hard money lenders.
So, what are some of the myths that surround hard money lending?
Myth #1: Hard money is illegal
First off, many people believe that hard money refers to illegally acquired money. This is not true. Lenders refer to these types of loans as hard money because only immovable property or asset can guarantee them. This means that you can get the loan you apply for based on the value of the asset you put up.
For that reason, you will find that a majority of the people that seek this type of loan from are real estate developers or individuals in commercial property. They tend to use the loans as financial assistance in developing property that has shown some investment potential. This is because the future earnings may be more likely to cover the entire loan amount once the project comes to completion.
Myth #2: Hard money loans are from unreliable sources
The second myth about these loans is that unreliable individuals fund them. This mistruth stems from the fact that not many people understand the world of commercial money lending. It is important to know that hard money lenders are not affiliates of any conventional bank, which follow government rules to govern their operations. As such, there is not much flexibility when it comes to giving money to borrowers who do not meet their criteria.
The greatest advantage of hard money lending process is that it is private financing. These businesses are privately funded. As such, they can overlook a number of shortcomings in your application as long as you meet their core requirements. Keep in mind that hard money commercial lenders are looking for equitable opportunities rather than looking for individuals that have great borrowing strength. You can get more information from reliable sources such as Evoque Lending on hard money lenders.
Myth #3: You must repay hard money in the shortest time possible
The third myth about these loans is that borrowers must pay in the shortest time possible. This misconception may come from the period of time that one has to utilize the loan, but it is not that short. When considering a hard money lender, bear in mind that you can have between one and five years to pay it off depending on the sum of money that you have borrowed.
The best way forward would be to remain diligent on your part to know what different loan options are available for your particular situation. This, in turn, enables you to make a wise decision on what amount of money to borrow and if you would be able to pay it off in the allocated period. With these myths dispelled, you can apply for your preferred loan size from a reliable lender. Get more advice from Evoque Lending on hard money lenders here: http://evoquelending.com/