Hard Money Lenders
Hard money lenders in Chicago in the past were the last ones to be considered when applying for a commercial loan. with a commercial hard money lender. However during the current mortgage meltdown hard money lenders are often the first place investors will search for financing.
COMMERCIAL Hard Money Lenders
If a real estate developer got stuck in a $10 million dollar development deal and planned to sell units to recover some of their investments from the project. However, delays in the sales date may occur or the project may exceed the budget. To avoid these circumstances, the developer will apply for bridge loan. With the traditional loan, the bank will not process the loan in four to six weeks. In this case, a hard money lender can offer loan immediately.
REHAB Hard Money Lenders
Rehab investor who wants to apply for a loan to renovate foreclosed homes that are vacant or unoccupied by, banks will turn down the loan application because they can?t verify that the rehabber can sell the units or the current occupants can?t pay the mortgage. Hard money lenders are willing to finance this kind of projects.
Investors who found a property of great value may need quick and secure financing to buy, renovate and sell the property immediately. These needs can be catered by hard money lenders. Loans can be prearranged with interests only so that expenses can?t get high. After the property is sold, the principal amount can be paid back and the profit can be set aside for the next project.
BORROWERS IN FORECLOSURE
Homeowners that have problems related to foreclosure can also seek help from hard money lenders. Hard money lenders can offer restructure of the current loan, unlike other lenders. However, they charge higher rates and they require the borrowers to have collateral of at least 25-30% equity in real estate.