Hard Money Advantages: Fast Answers
Hard money has a lot of advantages, but one important one is the fast “no.” If you’ve ever applied for a traditional bank mortgage you know that there are a million hoops to jump through. You may also know that nothing is assured until you get that final “clear to close” message from your lender.
It’s not unusual for banks to spend weeks or months collecting information from you, ad nauseam, only to reject you. This is the dreaded “slow maybe,” and it’s worse than a “no” in a lot of ways.
Hard money lenders will typically give you a fast “no.” This is valuable because you can move on without spending weeks spinning your wheels. Bank lenders don’t have the direct market information that a local, direct lender like Little City Investments does.
We regularly help real estate investors avoid spending money on appraisals or gathering exhaustive documentation for a loan that isn’t going to meet our requirements. Since hard money lenders have way fewer requirements, it’s much easier to tell our potential borrowers quickly whether the loan works for our group. Banks might have 1,000 different reasons to reject you, but we only have a few.
Conventional lenders are quick to order appraisals that cost you, the borrower, money. They may or may not look at all their (many) possible deal-breakers first. Since hard money lenders have way fewer deal-breakers, it’s much easier for us to tell you quickly whether your proposed loan will work for us.
If your credit is above 550, you have no recent bankruptcies or foreclosures, no criminal history of fraud/financial crimes, and the loan to value (LTV) is under 70%, you will more than likely qualify for a hard money loan with Little City.
Hard Money Advantages: Preliminary Values
Providing real estate investors with a preliminary valuation is one of many hard money advantages. Little City Investments has intimate knowledge of the Texas real estate market and access to MLS in the major metro areas of Texas. We can reality-check both your as-is value and after repaired value (ARV) quickly, and before you pay for an appraisal.
In-house property valuation is not a service that banks can normally provide for you. The only source of real estate market information available for a conventional lender is an appraisal, which you as a borrower pay for, and wait for. That’s not ideal when you’re crunched for time – which is almost always the case if you are an investor getting a good price.
Preliminary real estate values from a local, direct lender is a huge advantage to expediting your loan process. Appraisals can take weeks, and this is the only source of information that banks will work with. They can’t give you a preliminary value or advise you that they don’t think it will appraise as high as you were thinking. A local hard money lender like Little City can.
We can even close your loan based on our own in-house valuations if the property is in Austin, or within about 45 minutes of our office in 78704. This fact alone could save you 2 weeks or more. Our typical turnaround from inquiry to closing for a central Austin property is just 5 to 7 business days.
Bridge Financing from Little City Investments
We’re a direct, local lender ready to give you fast answers for your bridge loan inquiries. Apply today, get answers by tomorrow. Little City understands that time is a huge factor in getting a good deal in real estate. We promise not to waste your time with a slow maybe.
You should get a yes/no and a preliminary value within a day of applying for a loan with us. Get started right here >>