Asset Based Hard Money Loans
Asset-Based Hard Money Loans
In the caffeine-fueled world of real estate investing, asset-based hard money loans through a private lender is like your favorite espresso shot: strong, fast-acting, and gets the job done. In contrast, institutional hard money loans are more like that regular drip coffee — reliable but sometimes you’re you need a little more buzz. Institutional hard money loans are more often than not the go to product for real estate investors, but sometimes we need the special benefits of an asset based hard money loan.
Benefits of Asset Based Hard Money Loans
- Speedy Gonzalez Approvals Private lenders often move faster than a squirrel on an espresso run. Why? They focus on collateral (your asset) rather than your credit score or income history. This is great for when you’re in a rush to close a deal, and let’s face it, in real estate, who isn’t?
- Flexibility Yoga Private lenders are like yoga instructors for finance. They’re flexible. Need a unique loan structure or have a quirky investment scenario? No problem. Private lenders often have the freedom to tailor loans, unlike the fit in the box approach of institutional lenders.
- Less Red Tape, More Red-Carpet Institutions have layers of guidelines. Private lenders, however, often offer a red-carpet experience with fewer hoops to jump through. This means less time spent on paperwork and more on what matters: your investment.
- Relationship Goals Working with a private lender can be like starting a new friendship. They often take the time to understand your investment strategy and goals, offering personalized service. Institutions, on the other hand, might treat you more like a number in a queue.
- Creative Solutions for Creative Minds In the world of real estate, creativity is key. Private lenders are often willing to look at the big picture and find creative financing solutions, especially for projects that may not fit the traditional mold.
Draw Backs of Asset Based Hard Money Loans
- Higher Costs Higher risks equal higher rates, points and fees sometimes, not always.
- Lower LTVs Private lenders offering Asset Based Hard Money Loans are focused on the collateral for their primary decision. As such to be secure they will typically lend less based on the value of the property, sometimes.
- Limited Funds Private Money Lenders do not have the resources of institutional Hard Money Lenders. That is why it is not uncommon for them to be temporarily out of funds.
In Summary: Choosing between asset based hard money loans and institutional hard money loans is like picking between a speedboat and a cruise ship. Both will get you there, but if you’re looking for speed, flexibility, and personalized service, the speedboat (aka private lender) might be your best bet.
Remember, the best choice depends on your specific needs and investment strategy. And there you have it! A glimpse into the fast-paced world of asset-based hard money loans. Now, go forth and invest wisely!
To Learn More about asset based hard money loans Contact FBC Funding
888-848-3114
louisj@fbcfunding.com
