Q: What is the difference between a hard money lender and traditional lending?
A: Hard money lenders primarily rely on collateral instead of relying on your credit rating in determining whether to make a loan.
Q: Do I need good credit to close on a loan?
A: Private lending approval primarily comes from the value of your asset(s) or collateral, and not your credit score. Accordingly, your credit score is not as important in private lending as it would be in traditional lending.
Q: What are some examples of exit strategies?
A: Hard money loans are a short-term borrowing aid (typically 1-3 years), not a long-term funding solution. You’ll need to plan an exit strategy.
Q: What are the benefits of lending with a private lender?
A: The speed, structure, and better approval rates. The ability to fund the loan quickly can be the difference between winning and losing a deal.
Q: What are the types of bridge loans you offer?
A: There are two different types of bridge loans, open and closed bridge loans. It’s important to understand them both in order to pick the best choice for your personal situation.
Q: What does a lender look for in a construction bridge loan borrower?
A: Construction bridge loan lenders will typically require you to have sufficient cash reserves to cover certain contingencies. Among other things, they may also require you to withhold a certain amount of your loan as an interest reserve rate.
Q: What does a lender look for in a bridge loan borrower?
A: Net worth is one of the most important metrics in determining your eligibility for a bridge loan. In many cases, loan amount may be equal to your net worth.
Q: What qualities should I look for in a private lender?
A: You should look for a private lender that offers you flexibility, is willing to communicate, has a good reputation, and has a competitive interest rate
Q: Where do you lend?
A: Washington, Oregon, Idaho, Utah, Wyoming, Colorado, Texas, Tennessee, Virginia, Washington D.C., North Carolina, South Carolina, Georgia, Florida, Maryland, and Pennsylvania.
I really appreciate all you did for us. Having our original construction loan mature before we were qualified for conventional financing could have cost us our business. You stepped up and helped us. I would recommend you in the future without hesitation!