For the majority of real estate investors, finding the needed capital for a property can be a genuine nightmare – slow loan application processes, costly intermediaries and other problems are enough to render anyone frustrated with the loan process!
These problems are driving property investors to search for new and better funding solutions. Enter hard money loans, a relief for real estate investors and professionals seeking financing without the hassle of traditional loans. New Silver, with its’ innovative hard money lending in Connecticut and Massachusetts, is helping real estate investors buy, fix, refinance and flip their ideal properties. This is what you need to know before getting started:
What Is Hard Money Lending?
Hard money lending can come in different shapes and forms. Typically, hard money lenders are non-institutional or private lending organizations which provide short-term loans aimed at real estate development against the value of the asset. These short-term loans are ideal for fix and flipping, refinancing with cash out and bridging to traditional bank financing. This type of lending allows borrowers to close the deal faster than with traditional banks.
1. Costs and Terms Will Differ Distinctly Between Lenders.
Hard money lenders are private, so lenders in Connecticut and Massachusetts can set their own terms. This means real estate owners can expect to see rates anywhere between 9-15%, on the average. When starting with any hard money lender, it’s key to compare lenders to find the best terms for your project’s capital needs. Origination fees can also vary widely, so real estate investors will want to consider these carefully. For example, at New Silver, our rates range from 9.85% to 12%, with a range of origination fees between 2 and 4.5% as a standard on all our loan programs.
2. Using Hard Money Lending in CT and MA = Closing the Deal at the Speed of Business
Traditional loan institutions are finicky about loan applications and approvals, often costing the real estate investor valuable project development time, or even worse – the deal itself! With hard money lending, investors can apply for a loan, undergo review and get approved funding in one-third of the time it would take to receive a loan from a traditional institution. This quick-funding option for hard money loans is made possible by less strict requirements in loan applications and quicker turnaround times. For example, at New Silver, we can fund most loans within a week of application.
3. Work with Lenders Who Appreciate Your Business Passion
Real estate investors in Connecticut and Massachusetts are becoming increasingly interested in hard money loans. At New Silver, there are multiple loan options to choose from, whether your project passion is fixing and flipping, refinancing, fixing and renting or more! With so many options, real estate investors can depend on New Silver for different methods of funding at their fingertips.
4. Less Stress, More Leverage
Real estate investing can be a rewarding, but also a frustrating and stressful process. For investors new to the property industry, this and other problems like upfront costs and fees can be detrimental. New Silver hard money lenders offer the undeniable benefit of added leverage in the form of an experienced financing partner. New Silver hard money lenders are made up of a dedicated team of real estate professionals with incomparable knowledge and backgrounds, ready to work with you and provide advice and assistance.
5. Bad Credit? No Sweat.
Hard money lenders like New Silver put less stock in the real estate investor’s credit history and place more emphasis on the value of the property. At traditional banks, a real estate investor’s credit and other financial history form a large part of the loan application process, and often results in rejections. At New Silver, we service real estate entrepreneurs such as passionate fixers and flippers and those looking to expand their income with rental properties no matter their level of experience. Any real estate investor is welcome to apply for and be considered for loan approval regardless of their credit history and financial background.