Hard Money Loans
Hard Money Loans might not a good ways of getting long term financing, because loan to value ration for these loans are just 65% of the asset value. But it's one of the fastest way of getting large amount of cash. Anyhow, if you have considered to take the loan, be sure you get the fair deal with loan lenders. And make sure you use the fund wisely, capable to repay back the loan. Otherwise you will probably lose you valuable asset.
Here are some tips to deal with the lender :-
1) Many lenders who offering these loans are small business and operated by a single investor, try to deal with the one who can make quick unilateral decisions in one or two phone calls. This will save up much times and less hassle.
2) be realistic about the interest rate - for these loans the interest range are around 12%-18%. For those offering more than 20%, you probably can withdrawn and look for other.
3) Be cautious about the loan term and many lenders impose the tricks of paying interest only for each installment months, but make a balloon payment at the end. It's extremely hard to fulfill the agreement.
4) Look for the points - many lenders are charging the closing cost by using "points". For instance, 1 point equal to 1% of the loan amount, and lender is charging "6 points". If the loan amounting to $120,000, the closing cost will be $7,200.
5) Find a right lender - you may check the reputation of the lender from Better Business Bureau. Only seek for reliable and reputable lender to avoid being cheat.
6) Look for none recourse loan - for this loan, the lender can only take the home in the event of non payment by borrower, and shall no further action against borrower.
For other loans information and advice, please check out Various Loans Guide instead Hard Money Loans
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