The phrase ‘Money Makes the World Go Round’ denotes the value of money. Everyone needs money to fulfill his/her destiny. Whether you are an entrepreneur, a small-time retailer, manufacturer, or a 9-5 worker, there will be times when you would need cold hard cash to make your world go round i.e., move your plans forward. And there will be times when a bank might not support you because of a bad credit score or your inability to show income proof.
So, where do you go from there? Worry not, for there is a better way to get all the money you need. All you need to do is pursue a hard money loan. It is a direct lender loan that does not involve the nitty-gritty of conforming loans issued by banks. It is simpler, secure, and could be a potential life-saver for a failing business.
Difference between Bank Loan and Hard Money Loan
To ensure that you get your hard mon0ey loan approved by private money lenders, you need to follow an approach that is different from applying for a bank loan. Below are some differentiators:
- Banks have set guidelines for giving out loans. Private money lenders make their own rules and guidelines.
- Denver Hard money lenders provide more flexibility with the amount when compared with banks.
- The approval stage in a hard money loan is shorter than a bank loan
- Hard money loans rates are generally higher than interest rates charged by most banks
Tips to getting Loans Requests Approved From Private Money Lenders
Although hard money loans seem more convenient to obtain than bank loans, it does not necessarily mean that you will always be successful in getting them. Whether you are looking for hard money construction loans or a loan to fund your ailing business, you need to have a strategy in place. You can build a strategy in and around the tips provided below:
1. Show your personality and vision to the lender
Hard money lenders are very particular about the people they lend to. If they don’t like you as a person, they won’t lend. Be the person you are. Be passionate about your plans. Show them your vision. But you must be honest and transparent at the same time.
These lenders have long-term experience of reading people, so they will catch it if you lie or make an overzealous statement. Be clear with your plans and you will surely secure that coveted loan.
2. Provide information about the property you will be lending
To secure a loan, you will be lending an asset. Instead of talking about the property you own, you should show images and videos of the place to the lender. By getting a first-hand account of how things are, the lender is more likely to comply with your loan request.
3. Don’t shy away from showing the financial statements
Just because a private lender is not a bank, you should not try to hide the paperwork. Show them the financial statements and all the paperwork they need. Unlike banks, you won’t have to wait for a long time. As there is very little work and document processing involved in the hard money loan procedure, the loan will be approved relatively quickly.
Whether you are looking for new construction hard money loans or a home bridge loan, you need to have a plan in place before going to a lender. Understand: private money lenders are very different from banks. Show them your personality, be transparent with the paperwork and you will surely get the much-needed loan in no time.
In the US state of Colorado, you can find many hard money lenders in Denver who can help you buy your next home or power your business with your newfound capital.