Tennessee Hard Money Loans with Proactive Lending
Real estate investing can add financial rewards to your investment portfolio, yet it may also be a daunting and challenging process. You’re not too far off the mark if the phrase “hard money loan” conjures up images of quick and simple business transactions that result in “cold, hard cash.”
Now that you know what hard money loans are, should you avoid them? Property investors who either don’t qualify for a conventional mortgage or who simply need to close a deal quickly can benefit greatly in Tennessee from such short-term hard money loans. They might be a choice for borrowers with poor credit, but they can be risky due to their generally high-interest rates and quick repayment schedules. Let’s learn more about them.
How Do Hard Money Lenders Loan in Tennessee?
Traditional mortgages and hard money loans are different in a multitude of respects, including how they are typically used: Hard money loans are typically taken out to purchase investment properties as opposed to homes for personal use. The conditions and requirements can differ depending on the lender and deal, just like with other loans.
Tennessee hard money loans typically have terms that are determined more by the value of the asset that serves as collateral than by the borrower’s credit scores. Hard money lenders in Tennessee are frequently private individuals or businesses that see value in this type of conceivably risky venture since lending institutions, such as banks, will not consider hard money loans. Property flippers who intend to renovate and resell the property used as a guarantee for the financing—often within one year, if not sooner—might look into hard money loans.
Given that most hard money loans are only for one to three years and the other benefits they provide, the expense of a hard money loan is more than offset by the borrower’s intention to repay the loan relatively quickly.
How to Get a Hard Money Loan
With hard money loans, the value of the asset being purchased determines whether the lender will approve a borrower. Your credit or financial situation may be quickly checked by the lender, but overall, the process will be much laxer than with a conventional loan. This makes it possible for the procedure to move along more quickly, enabling borrowers to receive their money in a matter of days as opposed to weeks or even months.
The drawback of such Tennessee hard money loans is that the lender bears a lot more risk, which results in a costlier loan for the borrower. Hard money lenders in Tennessee frequently demand higher-than-average down payments, and they frequently have high-interest rates (though this isn’t always the case). Such loans frequently have short repayment terms—only a few years. This contrasts with conventional mortgages, which typically have a 15- or 30-year term.
Proactive Lending Group: The Most Sought-After Hard Money Lenders in Tennessee
Proactive Lending Group, LLC, are hard money lenders in Tennessee that offer the best hard money loans in town. We are a private organization that values all hard workers and is ready to provide loans in situations where banks won’t. We offer a range of loan products, including commercial loans, hard money loans, and conventional/SBA loans, to assist individuals in obtaining the funding they require to launch their businesses.
Hard money loans with us are generally secured by real estate and kept as collateral. We guide our clients on the best way to secure Tennessee hard money loans in the easiest manner possible. Want to learn more? Contact us today to speak with a knowledgeable lender!