Hard money loans are ideal for those who need a short term loan to build a business, rehab a house, or build it from the ground. They are mostly available through private lenders or investors, and the key to obtaining them is a proper presentation of the project they are meant to finance.
A few things you will need to show a prospective hard money lender are:
- Details of the property, including surrounding neighborhood, blue prints and any other factors that would show your project is worthy of approval.
- Your prospective budget and project time frame, including when you will be either paying off the loan or refinancing with a mortgage company.
- A list of works to be done and costs you will have to cover throughout the project.
- Your more personal financial situation, showing you are capable of paying on the loan.
As soon as you have these in order, you must find an experienced lender who specializes in hard money loans. This lender will be with you during your entire project, so make sure you work with someone who will support your efforts and will be easy to communicate with.
Don’t be afraid to call several hard money lenders in Connecticut and ask about their interest rates, penalties, how quick the approval process is, what other paperwork you might need and any other question you might have. This will help you get a better idea of whether a certain lender is right for you and will allow you to compare offers in order to find the best one.