Hard money lending presents a viable alternative loan option for people struggling to borrow from traditional lenders. Whereas traditional lenders such as banks may decline loans to a prospective borrower based on a very specific set of criteria, hard money lenders – also known as direct private lenders – are not limited by these types of policies.
Hard money lending is far better than traditional loan routes for people in need of money as soon as possible. Traditional lenders can take months to comb through your financial information and come to a decision on your application. Direct private lenders can instead approve loans in just days. This becomes especially vital when it comes to bridge loans, accessing the working capital needed while waiting for other funding to come through.
Hard money loans may also be appropriate for those with less-than-stellar credit histories. Borrowers with a history of bankruptcy or a deal gone sour may be more likely to be passed over by a traditional lender. However, a direct private lender focuses on the merits of the deal, shifting focus from the merits of the borrower. All a direct private lender needs is a clean title, a clean environmental report, and a current appraisal to make a determination.
Certain borrowers may struggle from the start when it comes to traditional lending routes. For example, if you’re looking to purchase raw land for a new construction project, traditional lenders will almost certainly balk at approving your loan. Since building new properties on raw land can potentially result in a large number of unexpected obstacles such as construction delays and zoning or permitting issues, traditional lenders see loans on raw land as too risky to approve. Direct private lenders, on the other hand, can be more flexible. A direct private lender will assess each deal on its own merits when making a decision. If you’re looking for a loan on raw land or a similar project, you might do best to start with direct private lenders.
Another great example for the need for hard money is international loans. Risk-averse traditional lenders don’t even want to touch an area where they don’t know the real estate market or its regulations. Select direct private lenders such as Kennedy Funding specialize in approving international loans in other countries, so when you’re looking to borrow money for your next international project, a hard money loan will be your best option.
For international loans, you should make sure to choose a direct private lender familiar with the country where you’re operating. Kennedy Funding has closed more international deals than any other direct private lender thanks to its in-house staff of experts who know all the ins and outs of countless countries’ financial laws.
“We’ve closed loans in regions as diverse as the Caribbean, Australia, Canada and Central America,” says Kennedy Funding CEO Kevin Wolfer, “so borrowers can rest assured that wherever they need an international loan, we have the infrastructure necessary to make it happen for them.”
If you think your project or circumstances are a good fit for a hard money loan, contact Kennedy Funding now to begin the application process.