The best way to earn the trust and approval of hard money lenders Miami is not based on how much you presently earn or your present credit score but on the potential of your proposed project or property to generate profits in the long run and your ability to deliver the best exit plan or strategies to them. It is necessary to remember that hard money is a temporary financing solution for you if you notice that other funding options are unavailable. Most hard money lenders offer loans within the one to three-year period. Because it is temporary and can only serve you for a shorter term, you need to develop the best exit strategy which can benefit not only the lender but you as the borrower as well.
One of the best exit strategies for borrowers aiming to impress hard money lenders Miami is to do something to rebuild their credit or settle their present financial obligations during the period when the hard money loan is secured. Within the one to three-year period, you can actually do substantial changes in your credit ratings that will make it possible for you to acquire another loan in the future. In other words, if you discover that the reasons why your loan applications submitted to banks and traditional lenders are continuously rejected is your bad credit and large debt ratio, then you can use the hard money loan’s duration to clean up your records.
Another good exit strategy is to consider selling the property. If it is a house, then you should be prepared to unload it and begin a new life once it is already sold. If this is your exit plan, then rest assured that good hard money lenders Miami will always be willing to give their borrowers sufficient amount of time to sell their properties at fair prices. Selling the property will let you acquire sufficient funds to settle the loan. Other great hard money loan exit strategies include getting subprime mortgage and refinancing.