The hard money lenders are those who lend based on the value after repair (ARV) for the home. This makes it best to consider when the condition of the property is so poor that the investor would not be able to get the conventional loan.
You can also hire the best hard money mortgage lenders for your real estate deal.
Image Source: Google
For example, if the property requires roofing work, most conventional lenders won't make the loan, however the hard money lender can be able to fund the project if the property is purchased at an amount that is substantial enough.
Apart from allowing one to buy distressed properties which requires some work, hard money lenders can also help buyers to buy a deal fast and efficiently, which is essential when purchasing wholesale from a retailer.
Be aware that due to the lender's risks in financing these deals, they can have high interest rates as well as charges. It's not uncommon to see lenders who charge 15 percent interest and four to five points (each point is the equivalent of one percent) on the amount of loan.
If you've stumbled across an acceptable deal and have a solid exit plan once the property is repaired, hard cash lenders could be a valuable tool to have.
There are many ways to locate these lenders on the internet. Start by searching through a search engine, such as Google. Furthermore, social networking websites can be a valuable source of hard-earned money within your region.