Private Money Lenders Make it Easy
If you’re applying for an investment loan from a private money lender, you don’t need a credit report. A lot of private money lenders for real estate rely on the value of the property you’re investing in to determine whether or not to give you a rehab or rental property loan. This kind of asset-based loan is ideal if you’re investing in property which you’ll rent or fix and flip. In fact, hard money lenders are experts in this kind of investment and can be a huge help as you determine the value and potential value of the property you hope to buy.
Banks Require Personal and Professional Details
On the other hand, as a borrower for a traditional loan, you’ve got to have your details in order. That includes your years in school, a former address if you’ve moved within the past two years, and information about your family, including marital status and any dependents. Be ready with employment details, employers name, address, and contact info, job title, length of time at the job, and length of time doing similar work or in the same industry - for each job you do. It can be quite overwhelming!
Banks Want Financial Details
You’ll need a monthly income average, including bonuses, interest or dividends, net rent, pension, child support, alimony, and overtime. You’ll also need all expenses, including monthly taxes, any mortgages, and all types of insurance. You’ll need an estimate of how much the new property will cost, including rent, mortgage, taxes, insurance, etc.
Banks Require a Breakdown of Assets and Liabilities
Assets should include just about everything, as long as it’s relevant. Definitely know how much you have in liquid assets, which includes checking and savings accounts as well as any stocks or bonds. Life insurance and retirement investments may or may not be important, depending on the amount you have saved. Any cars and businesses will be factored into your net worth as well. The majority of liabilities will be included in your credit report, which is required from banks giving investment property loans.
Filling out loan applications is hard even for loan officers. It takes a lot of time and energy and information gathering to get it right, and any little mistake can cause a huge delay. With hard money lenders who focus on investment property lending, you’ll get the financing you need more quickly and without all the required documentation that traditional lenders require, and a lot less hassle!
If you are considering a property rehab project and need funding, Center Street Lending can make it happen. We lend in CA, AZ, CO, UT, TX, FL & NC, up to 80% of the property purchase price as well as 80% of your anticipated rehab costs. Give us a call today at 949.244.1090, or request a no-obligation quote online. We use a simple, streamlined process, and can fund your project in as little as 24-hours!
Center Street communications are not intended to provide business, legal, tax, investment or insurance advice. No Center Street communication should be construed as a recommendation for any business or investment strategy by Center Street or any third party. You are solely responsible for determining whether any investment, investment strategy, business strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation.