Sending loan applications to trusted private hard money lenders in your area is the best thing that you can do if you are presently in need of quick cash but you seem to have a hard time getting approval from traditional lending and financial institutions including banks. Private hard money loans are easier to get but before starting the loan application process, it is crucial for you to get a clearer idea about what to expect from this transaction and try to gather reliable answers from the most frequently asked questions related to this type of loan. This will allow you to be fully prepared once you start to apply for the loan. Taking note of the following tips can also assist you in obtaining a better chance of getting approved:
1. Know your Purpose. Before sending out loan applications to private hard money lenders, it is crucial for you to decide how you intend to use the funds that you will get from it. You should also remember that most of these lenders favor borrowers who can show an effective formulated plan which has actually worked before. You should develop the most suitable project plan depending on how you intend to use the money and show this to your chosen lender.
2. Create a Written Executive Summary. This should consist of concise statements about your plan including your loan amount request, project timeline, purpose of applying for the loan, exit strategy for loan repayment and any other investments that you have already done for the project. Show a private hard money lender with brief yet detailed facts. You should also be able to show them what benefits they can get from approving your loan.
3. Present Pictures of the Property. You have to show private hard money lenders clear pictures of your proposed investment and its surrounding neighborhood. This is necessary since this will allow lenders to fully understand the property’s comparative value. If your chosen lender realizes the potential of earning profits from the presented pictures, then expect him to send over an appraiser to check out your property and appraise it for reasonable gain. This will bring you closer towards gaining approval.