There are plenty of situations where you might need more cash than you have available. While there are plenty of loan options, you need to consider working with a hard money lender when you need cash as quickly as possible. What are some of the top reasons why you should consider working with a hard money lender instead of a conventional lender? Take a look at some of the top advantages below, and do not hesitate to reach out to a professional who can help you.
1. You Need Cash Quickly
One of the first reasons why you should consider partnering with a hard money lender is that you need cash as quickly as possible. While you have plenty of loan options available, it will take you a long time to get cash if you decide to work with a conventional lender. For example, it is not unusual for someone to take more than a month to close on a new home loan.
If you need cash quickly, going with a hard money lender is going to be a better option. Some of the most common situations where someone might need a quick source of cash include:
- You have a great real estate investment opportunity in front of you, but you need cash to purchase the property as quickly as possible.
- You might be interested in funding for a small business, and you need money to cover your payroll, purchase a building for your business, or invest in opportunities for new growth.
- You might also need access to a private line of credit that you can use for a variety of investment opportunities, and a hard money lender can work with you to provide you with the funding you need.
These are just a few of the most common situations where someone might decide to work with a hard money lender. If you need your cash as quickly as possible, you might be better off working with a hard money lender instead of a conventional lender.
2. You Have Trouble Qualifying for a Conventional Loan
You should also consider working with a hard money lender if you are afraid that you will have a difficult time qualifying for a conventional loan. There are a variety of qualifications that you will need to meet if you are interested in taking out a conventional loan. They include:
- You need to meet a minimum credit score. A conventional lender is typically unable to be flexible when it comes to credit score requirements, so if your credit score is not high enough, you need to go with a hard money lender instead.
- You also need to provide adequate income history. This means that you might need to provide access to your tax returns, or you might need to show evidence of a W2. If you don’t have the income history, it might not matter what other qualifications you bring to the table, as a conventional lender might not be able to help you.
- You also need to clearly show where your funds are coming from. If your funds for your down payment were deposited recently, the conventional lender might not be willing to accept that source.
If you do not meet these qualifications, you need to work with a hard money lender who can get you approved instead.
3. You Want To Purchase an Unconventional Property
If you feel like the property you are purchasing is a bid on conventional, then a conventional lender may have a difficult time approving you. For example, you might be interested in purchasing a property that is in a state of disrepair, and a conventional lender might not be willing to fund your investment.
Or, if you already own multiple properties, a conventional lender might not be willing to provide you with another loan. Even if you have clearly demonstrated that you are capable of managing multiple properties at the same time, the conventional lender may still reject your application.
You also need to think about the type of business you run. If you are interested in purchasing property for your business, conventional lenders might not be able to help you if your business is out of the ordinary. If you want to purchase property that is a bit unconventional, you need to work with a lender that has more flexibility, and that is where a hard money lender can help you.
4. You Want To Get a Loan With Assets
Finally, if you are interested in taking out a loan with the assets you have instead of with your income history, then you need to work with a hard money lender. The most important thing a lender needs to know is that you have the capability to pay back the loan once you have been approved. If you can show that you have enough assets to pay back the loan, then you should be able to get approved by a hard money lender.
A hard money lender will also let you decide what assets you tie to the loan, which will make it easier for you to secure a low interest rate. For all of these reasons, if you are interested in taking out a loan with your assets, then you need to work with a hard money lender who can help you.
Work With Barrett Financial Group If You Need a Hard Money Loan in AZ
These are just a few of the many reasons why you may want to go with a hard money lender instead of a conventional lender if you are interested in taking out a loan. We are Barrett Financial Group, and we have experience working with clients of all backgrounds. We can use that experience to customize your loan package to meet your needs, providing you with favorable terms. If you would like to learn more about how we can help you, contact us today to speak to a member of our team.