There are many reasons to use a hard money lender such as Montegra. They are a lender that will loan you money even if you have bad credit. Because they look at the collateral first and then the qualifications, they are able to loan money when other institutions cannot. If you have trouble proving your income, that will not be a problem. Sometimes this can be hard to document in a way that will satisfy a banker’s requirements. But a private lender such as Montegra, look at it in a different way. They just want to make sure that the loan can be repaid. Sometimes banks have a hard time lending money on a distressed property. They want to make sure the property is already making money. However, a private lender will look at the plans for the property and capture the vision that the borrower has to develop the property to increase the value of the property.
Hard money lenders can promise quicker funding. They are able to close the loan quicker than a bank or other institutional lender can. Sometimes this can lead to helping the borrower negotiate lower prices with the seller. Quicker finance coming through, can be a real bonus to help the borrower if there is a time frame to worry about. The buyer is also able to get busy with his renovation, thus saving time to get the property turned over. Once the property is bought with a bridge loan, part of the funds go to fix up the property quickly. After the renovation is complete, the buyer is able to turn the property around to sell it or is ready to do a refinance. Once the refinance is complete, the bridge loan must be paid back. Montegra will finance 65% of the property’s completed and fully leased value. Hard money lenders are the means to make the final sale possible. They take the worry out of borrowing.
If you are looking to buy an apartment complex and are negotiating a price but the bank is going to take a long time to do the loan, you can actually do a hard money loan which is much quicker. By doing a quick loan, the seller may bring the price down for you. You can get the apartments, then go ahead with your bank loan so that you can pay back your bridge loan. Bridge loans are easier to get than the regular bank loans. They don’t have all the regulations to follow that a bank or other regular financial institution does. That makes it a better option for those who are under a time crunch. In the long run, it can be a win-win situation for everyone involved. If the purchase requires renovation, Montegra will follow it through providing the funds that are needed to complete the project. The seller will be able to refinance at that point, thus providing the funds to pay off the bridge loan. The bridge loan is a temporary solution to a financial situation.