Why are hard money lenders called high risk lenders in San Francisco?
Hard money lenders give loans based upon the worth of a home or another sort of commercial property and therefore are costly due to the inherent high risk of their loan. There's hardly any income documentation needed on a hard money loan though, the more information that is available, the better chances you have of being accepted.
These hard money lenders step in during the time of need and provide you a fast response and get you to the closing table quickly. The shorter the length of your hard money loan, the better for you and the creditor. So, hard money lenders do asset-based lending.
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If done correctly, it can be a win-win scenario for both the hard money lender and you. Hard money lenders typically lend for a brief time period and they give it to folks that are in fiscal distress or to people that are approaching foreclosure or bankruptcy. For instance, the house might not be entirely assembled, or the office not leased along with your current notice is coming due.
For the most part, hard money lenders don't care about your own credit history. Nor do they care about your job or previous bankruptcies. The home you have is exactly what secures you the loan. On average you will receive roughly 60 to 75 percent of the value of your premises. It's advised that you speak to a number of hard money lenders prior to making a determination.
Ask as many questions as possible concerning their background and expertise within the specialty. So, locate a suitable hard money lender and overcome your situation.