Everything You Should Know About Hard Money Loans

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Everything You Should Know
About Hard Money Loans
2625 East 14 St. Suite 209 Brooklyn, NY, United
States 11235 info_at_expresscapitalfinancing.com
www.expresscapitalfinancing.com
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Hard Money Loans Distressed Properties
The Perfect Match
A distressed property is one that is being listed
by the h ard money lender or has entered into
the foreclosure process. There is a multitude of
reasons why a property is classified as being
distressed, but regardless of the cause, this
type of real estate presents a significant
opportunity for savvy investors to get an ideal
purchase price and considerable profit. If youre
contemplating acquiring a distressed property,
but dont have the capital on hand to complete
the transaction at this time, heres a few
compelling reasons why you should use a hard
money loan to get the funding you need in a
short amount of time so you dont miss out on a
great deal.
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Pros of Acquiring Distressed Properties

• Prior to obtaining a loan, its essential to
  comprehend the overall benefits of acquiring a
  distressed piece of real estate. When a lender
  repossesses an asset, they are typically looking
  to offload it as soon as possible so they can
  recoup the initial investment they made in the
  form of the loan. This urge to quickly sell the
  property usually means that the listing price is
  much lower than you might otherwise be able to
  afford in a given location. Additionally, more
  often than not, investors will generally be able
  to realize a handsome profit by making
  renovations and upgrades to increase the homes
  attractiveness to subsequent buyers on the
  market.
• The sale can potentially be completed in a short
  amount of time, and if youre able to keep the
  rehab window short, you can repay your hhard
  money loans near me quickly and avoid substantial
  interest fees. Heres a closer look at why you
  should consider a hard money loan for funding
  the acquisition of a distressed property.

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Quick Approval Process
One of the most favourable aspects of hard money
loans nyc is that they are significantly faster
than conventional sources of funding. Your
credit score doesnt weigh as heavily into the
approval processalternatively, the propertys
valuation is most important as it is used as a
collateral asset to secure the loan. From an
investors perspective, this is ideal as you can
have access to financing in a matter of days as
opposed to the months it typically takes in
order to get approved by a bank or similar
lending entity.
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Enhanced Buyer Profile
Hard money loans enable investors to have cash in
hand to offer to the distressed propertys
seller, which can be extremely useful if the
property is a hot commodity and there is a lot of
competing offers being submitted. Having the
ability to offer cash provides real estate
investors with a certain degree of leverage when
it comes to the negotiation process, and the
entire loan process can be completed in a short
amount of time. This allows investors to pounce
on last-minute dealsgiving them a distinct
advantage over the competition in up-and-coming
areas where other investors are looking to land
deals.
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Ideal LTV Calculations
An additional benefit of going the hard money
loan route is that the loan-to-value (LTV)
calculation differs from those conducted by
conventional lenders. This means that investors
may potentially receive more funding than they
would from another lending entity, even though
the LTV ratio may appear substantially lower
initially. Conventional lenders are required to
follow certain federal guidelines by tabulating
loan amounts from the purchase price or
appraised value. Hard money lenders, however,
have the flexibility to choose the value they
want to utilize for the LTV, as they do not have
to abide by the federal rules. That means hard
money lenders factor in a higher property value,
and, depending on the particular circumstances
of the given transaction, may be able to consider
the value of the property after the renovation
process is complete or the After Repair Value
(ARV) as opposed to the current value. The end
result of this process is that real estate
investors are often able to obtain the funds
they need both for the initial acquisition of
the distressed property, but also money to make
the desired repairs.
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Express Capital Financing is a direct/nationwide
lender of bridge and hard money financing as
well as small and large balance commercial
mortgages. If you are looking to partner with a
hard money lender, Express Capital Financing
offers pre-approval letters within 24 hours.
Wed love to connect with you!
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2625 East 14 St. Suite 209 Brooklyn, NY, United
States 11235 info_at_expresscapitalfinancing.com
www.expresscapitalfinancing.com