The Benefits Of Borrowing From A Private Commercial Hard Money Lender
Oct 05, 2016
Investors looking for alternative funding options will look to hard money lenders for a solution. Most commercial hard money lenders will provide such investors with a hard money loan. These loans offer many advantages to borrowers pursuing a non-traditional lending process. Hard money lenders utilize asset-based financing to evaluate borrowers, which is different than traditional lenders who qualify borrowers by credit scores. Also, the turnaround time for hard money loans is significantly shorter than the traditional process, making it more attractive to borrowers.
Many asset-based lenders must charge higher interest rates due to the inherent risks of these loan types. Lenders have to accurately gauge the risk of a proposed loan, and charge the borrower an interest rate that justifies them taking on that risk. This can be more complicated than the traditional loan approval process because real estate valuations entail more variables than a simple credit check.
Hence, hard money lenders often charge a higher interest rate than necessary. Most of these lenders aren’t purposely overcharging borrowers; they are just miscalculating the risk involved with the loan. With 35 years of experience in the mortgage and real estate business, Riverdale Funding is able to offer attractive interest rates to borrowers, relying on its expertise in assessing risk.
Borrowing From Private Commercial Hard Money Lenders
As a private commercial hard money lender, Riverdale Funding provides capital to borrowers using funds from its own portfolio. By working closely with the borrower, private lenders are able to tailor their loans to better match the borrower’s needs, which often results in favorable loan terms. For example, Riverdale can offer borrowers interest rates starting at 10%. This rate is significantly lower than those offered by other hard money lenders, who will charge a rate of between 15-19%.
Apply Today For Commercial Real Estate Asset-Based Funding
If you are looking for a privately issued, asset-based loan then you should contact Riverdale Funding today. You can use our loans for a variety of purposes including, but not limited to: development projects, investment properties, industrial properties, non-owner occupied 1-4 family properties in a corporate or LLC name, and 5+ family unit buildings. Get started by applying online or give us a call at 1-888-368-4983