A hard money loan is a loan that is primarily secured by the equity of a hard asset, most commonly real estate. That is why a hard money loan is also called an asset-based loan. One of the biggest factors affecting the approval of a traditional loan is your credit history and income. Lenders want a candidate that possesses a reputable re-payment history because this demonstrates the consumer’s ability to repay loans.
However, it is no secret that a great credit score and a lot of income, isn’t necessarily a golden ticket to approval – the overall process can be invasive and take a long time. Hard money lenders utilize a different approach by lending funds based on collateral; therefore, the lender places less emphasis on credit history.
Generally, hard money loans are contracted for a short-term – usually between 12 to 36 months. A real estate investor would not want their loan for a long period of time because the interest rates are typically higher than traditional loans. One of the biggest benefits of choosing a hard money loan is the speed at which you can close. Sudora Capital can close quickly in a matter of days which is essential when trying to win the bidding war on a property for your next project.
Basically, hard money loans allow real estate investors and developers the opportunity to purchase more properties and do more deals with less upfront capital which results in a great return on their investment.
A hard money loan can offer a few key aspects to a borrower. One aspect a hard money loan can offer is how fast the loan is accepted and funds are given. This is due to hard money lenders not having to go through and extensive process of reviewing the borrower’s application, verifying your income, reviewing bank statements and so on. This results in you receiving a loan within days.
Another benefit of a hard money loan is the flexibility. Hard money lenders do not use a standardized underwriting process. Instead, they examine each loan individually. With that being said, depending on your situation, you might be able to tweak a few things such as repayment schedules.
A final benefit of a hard money loan would be the approval process. Hard money loans are specifically based on collateral so you can borrow as much as that collateral property is worth. While on the other hand, a typical bank will only give you a loan based on your credit and income while a hard money lender will not.
If you do not have the time or energy to deal with a conventional lender, you should look to Sudora Capital. At Sudora Capital, you will not be bothered with upfront fees, a pile of paperwork or endless concerns from an underwriting committee. Funding commitments usually take only a day or two.
Like other value-based lenders, Sudora Capital speeds up the application processing time, making funds available quickly. Unlike banks, our focus is not on your personal financial situation. We aren’t poring over your credit scores, tax returns, earnings records and asset information. Instead, we open up the opportunity for you to capitalize on your real estate. We look at your hard assets—the commercial or investment real estate used as collateral.
Sudora Capital’s borrowers range from those with bad or slow credit, to the time-constrained, or those in need of quick financing to solve a problem or capture an opportunity.
Sudora Capital takes into account general commercial properties, including office, retail, mixed-use light industrial, single-family investments and multi-unit buildings.
We do not have a formal rate structure because each loan deal is unique. We price interest rates based on the merits of the loan funding request. We also have programs for investors who use Sudora Capital Capital for their short term financing needs.
At Sudora Capital, we lend from $100,000 to $25,000,000. Every deal we look at is different. If you are unsure of how you fit, send us a quick e-mail.
Check out our Blog for more information on hard money loans!
