Tight Lending Means More Business For Chicago Hard Money Lenders
As banks and financial institutions raise their lending standards, aspiring investors are turning more and more to hard money loans for initial funding to get their business and personal projects off the ground.
The trend is specifically strong in foreclosure investing, a market that has considerably grown in the wake of the housing crisis. However, as commercial lender's resources run dry, it has become harder to get financing even with decent credit.
Most foreclosure investors, studies show, do not mind paying a premium for hard money loans as long as they can get good profit from a deal. When done properly, a foreclosure transaction can bring in enough profit to make up for the added costs of hard money loans.
Chicago Hard Money Lenders extend loans backed by the property itself, allowing them to skip credit checks and other forms of security. By using real estate as collateral, they are able to make loans even to investors coming to them with high-risk projects.
The growing number of foreclosures and short sale deals has also added to the appeal of hard money loans. As more distressed homes hit the market, many opportunities come along that are "too good to pass up," according to short sale specialist Jason Parker.
Parker says that these buyers typically pair up with other investors and refinance the loan, or sell it off to a final buyer. In any case, he added, there's good profit to be made everyone involved gets a fair share.
Commercial banks don't normally offer hard money loans, so it takes some market savvy to find them. Most borrowers find lenders through property investment groups, mortgage brokers, and official business listings.
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