Do you have a property which you think has the potential to earn more than what it is worth? Do you wish to turn your property into a commercial establishment with the capacity to bring you consistent income? If you answer either of the questions with a yes then it is best that you read on. In such situation, in order to get funding for a business enterprise, the solution is to secure a loan. Unfortunately, most banks are still wary about releasing loans due to the impact of the previous economic crisis. Good thing there are the hard money lenders who are willing to grant loans to individuals who can secure the loans with real estate properties. These properties are used as collateral in lieu of the hard money loan being granted.
The biggest issue that most borrowers face when asking for loans from banks is the credit check. Right now, a lot of individuals that were affected by the economic crisis have poor credit scores which disqualify them from the loan. Hard money loans do not require credit checks. The loans are secured by real property and it is typically short termed often between six months to a year with the option to extend. The interest rate is also higher between 15% to 18%. The loan amount is computed base on the actual quick sale value of the property and 60% to 70% of that amount is typically granted. The processing time is also shorter and less tedious requiring very little documents.