There is a way you can borrow money without using the traditional mortgage lenders and that is what is referred to as hard money. There are always investors ready to supply you with the money and it might even be an individual but collateral is needed. If you wish to get the money within a few days or hours then this is one of the best options. Additionally, it will come in handy if you cannot find a traditional lender who is ready to approve your Hard money lending ny loan. Normally, it takes a long time for loan approval to be done if you borrow from traditional lenders and you will be provided with a long list of the conditions to be met prior to the approval. These are issues that will not give your sleepless if you opt for hard money. As long as you have an asset to serve as collateral you will definitely get the loan approved. Also, there isn't much focus on whether you can repay the loan or not because of the collateral.
The most important aspect that is considered when you are getting fix n flip loans ny is the value of the collateral you are providing. The repayment period can be just a year or 5 years because these are usually short-term loans. One of the merits of going with this option is the speed of processing. The only thing that will be standing between you and loan approval will be asset valuation.
It is not like the lenders are happy repossessing your property and they always hope for the borrowers to pay back the money on time. The fact that there is collateral means they do not have to spend much time verifying your income or even checking through your bank statements which seems important to traditional lenders. Traditional lenders can have you losing out on many great investment opportunities because they took too much time before approving the loan. Check out this website at http://money.cnn.com/2014/12/18/smallbusiness/alternative-lending-millennials/ to know more about loans.
Another advantage of hard money is the flexibility of the whole process. The agreements can be changed depending on the situation but this is not possible when you are borrowing from traditional lenders. The underwriting process in the case of hard money is done per case rather than following a standardized one as is the case with traditional lenders. This means you can negotiate with the lender on various issues including repayment schedules. The negotiations are not with a corporate but rather one individual which means there is a high chance that he or she will offer a listening ear when there is something you need to get off your chest. Also, the fast approval and higher rates of approval do appeal to many people too.