Mortgage brokers are always looking to find new and better ways to serve their clients. If you are looking to work with real estate investors, having as many options available is a must to close deals.
That’s why more mortgage brokers are teaming up with hard money lenders to help get options for their clients.
Hard money lenders offer asset-based loans for real estate investments. This makes them a top pick for mortgage brokers working with real estate investors, or clients needing more options.
We cover the top reasons why you should be working with a hard money lender, and how they can help you close more deals.
No Credit Scores
Hard money loans are asset-based loans for real estate. Unlike traditional loans that use the borrower’s credit to determine the loan. Hard money lenders use the underlying value of an asset to determine the loan amount.
Traditional loans combined the property value, and the borrower’s assets and credit for the value and terms for their loans. Base. Hard money loans, on the other hand, are secured by the value of the property. Some lenders use the future value to determine the loan size as well, depending on the investor’s budgets. They calculate this by using the following: After repair value (ARV), comparable properties in the area, and adjusting for the market.
Some hard money lenders may base the loan amount on the ARV or after repair value of a loan. For clients who plan to house flip, these loans can be approved to cover the cost of the purchase and repair of a property.
Investors with poor or bad credit won’t be turned away from these lenders. As all hard money loans are based on the asset value, as long as the property and an investment plan are sold, they can be easily approved and funded in a manner of days.
Easy Applications
The benefits of hard money loans Scottsdale don’t stop at asset-based loans. Hard money lenders pride themselves on making the application process as easy as possible.
For those looking for funding for real estate investors, hard money lenders make it easy to apply for their loans.
To Apply For A Hard Money Loan, You Will Need:
- The Purchase Price Of the Property
- Investment Plan
- Rehab Budget
- After Repair Value of the Property
As an asset-based loan, there is no need to submit a credit report, background check, or income history. You don’t have to share any invasive information about your client, aside from the property information they are looking to fund!
Applications can take only minutes to complete, and can be approved in less than 12 hours!
Fast Answers and Funds
When you work with investors, you don’t have time to jump through the hoops to get answers for your clients. You also can’t afford to waste time, or wait to see if you are approved. Any time wasted can lose sensitive deals. You need fast turnarounds, and answers for your clients on their investments.
Hard money lenders offer the fastest approval times for real estate investments. Many even offer same-day approvals and funding for deals in less than 2 days. If you need an answer that day, you can hop on a call and get approved in only a few hours.
This can be a huge deal saver for clients who need to close A.S.A.P, such as those needing bridge loans for gap funding. This is also a great option for clients looking to purchase foreclosures, or that want to purchase at auctions.
For fast approvals, quick funds, and happy clients, it’s no wonder mortgage brokers call hard money lenders their secret weapon!
Summary
No one likes working under a ticking clock, which is why hard money lenders make it easy to get the fast loans you need for your clients. Whether it’s a last-minute deal or the last option, hard money loans offer funds for your client’s properties on their timelines.
No matter your client’s credit score, hard money lenders can provide fast answers for the deals that need them most!
Why You Should Work With A Hard Money Lender
- No Credit Scores: Asset-based loans that are perfect for real estate investments.
- Easy Applications: No need for tax returns, employment histories, or time-consuming credit checks. The only information needed is for the property, and investment plans.
- Speed: Do you need fast answers and approvals? Hard money loans can approve in less than 12 hours, and fund as quickly as 2 days! Great for those time-sensitive deals.
Have you ever used a hard money lender for your clients?
About the Author: Catherine Way graduated from Michigan State University with a Bachelors in Advertising, and a specialization in Graphic Design. She is a freelance content marketer for various industries ranging from photography, marketing, mortgages, and real estate. She has written for Silver Doctors, The Paper Source, Active Rain, and Progressing Income. She enjoys finding new creative outlets through writing, designing, dancing, and on occasion modeling. She currently writes and reports for Prime Plus Mortgages – Hard Money Lender Arizona