Turn To Hard Money Loans When Your Bank Says No | Riverdale Funding

Turn To Hard Money Loans When Your Bank Says No

Oct 05, 2016


Banks might be called lending institutions, but at times it seems like they’re in the business of not lending money. Given that just about anything can make a bank choose not to make a loan, you might be one of many real estate investors that needs money to make a transaction happen but gets denied. When your bank says “no,” hard money lenders are here to help you. Here are some of the ways that they can get you to the closing table:


When Banks Deny You

Even though your real estate loan is backed by a valuable piece of collateral, banks also frequently impose unrealistic requirements on borrowers. If you have any credit issues, you could get denied. Even if you don’t, but if the bank doesn’t like how much debt you carry from other loans, you could also get denied. Hard money lenders, on the other hand, are much less worried about your financial history. If you have a down payment and a good piece of property, you usually will get approved and be able to close on the deal.


When Banks Deny The Property

Banks like properties that are simple and straightforward. However, many of the best opportunities are in more complicated deals. For a bank, it’s hard to lend on a property that needs work or one that is vacant and doesn’t have a lot of cash flow. Since they can’t check the boxes on their forms, they’re likely to miss out on the opportunity to lend on the deal. Hard money lenders, on the other hand, have vision and can see when a deal is a few steps away from perfection. They are in the business of approving loans that let you turn good investment opportunities into great properties.


When Banks Move Too Slow

A typical bank approval process can take weeks or months. Between the due diligence they need to do, the third party reports they need, and their committee’s schedules, it’s not uncommon for a bank to take 60 or more days to issue a binding approval. Hard money lenders can move quickly — sometimes in as little as a few days.


When Banks “Just Don’t Feel Like It”

Sometimes, traditional financial institutions will or won’t lend for purely internal reasons. They might have too many loans in their portfolio in a given size or a given area. A shift in strategy might make them choose to lend on equipment instead of real estate, or they might just pull back for the end of the quarter. Hard money lenders, on the other hand, are in the business of lending on real estate all of the time.

Getting a hard money loan starts with contacting a lender. Once you reach out, the process can be both quick and easy. This puts you in position to write strong offers on the best properties before anyone else can.

Riverdale Funding commercial hard money lenders make a loan solely on the value of property, and accept all credit scores and financial histories. If you think your property qualifies for a hard money loan, contact us today for an evaluation!