Lessons Learned About Funds
Hard money also referred to private money is a type of cash that comes from individuals who lend it to you and not financial institutions. They are always putting in place restricting and deterring measures to ensure that their investment capital is safeguarded and retained while gaining profits. The lenders only lend you the cash up to a certain percentage of the fair market value of the property you offering as a security or collateral. They have become well known as an option to get easy loan when your bank or Sacco cannot bail you out. They are both benefits and challenges that come with private money lending or loans.
They come through for in case of an emergency, and you have no one else to sort it out for you. Private money lenders can give you the loan even if you have bad debts records and financial intuitions have blacklisted you from getting loans. Considering the interest rates for loans and deadlines for repayments, private money lenders do have higher interest and less time than financial institutions like banks. They deal with different kinds of loans; school loans, mortgage loan, personal loan and commercial loans. For them to approve your loan, they consider primarily on the market value of the asset you are offering as collateral, if the value matches that of the loan you are requesting then you get the money. Various money lenders have their own rules on issues like loan repayment period, charges in case of delayed repayment, interest rates, the kind of securities you offering, the requirements you need in order to qualify for a loan and their schedules. They take risks offering hard money loans that even banks do not offer.
Private money lending transaction procedure is cheap, and anyone can easily access and successfully go through with it. Filling the required documentation that comes in terms of forms to be assign as an agreement is all you need to do. If they are satisfied and feel that you are credible enough or qualify for the loan then you get it. The process of hard money lending takes the shortest time possible compared to the that of financial institutions and hence reliable for someone who has an emergency that need cash fast. The lenders assess the value of your property and if they find it sufficient, you receive the loan within period not more than ten days.
Before dealing with the lenders, it is recommended that you know the terms and conditions of the lender so that you can find one that is suitable for you and fits your needs. They are of more benefit to business starters that need capital but cannot access them.