Hard money lenders come in handy when you need to settle a business deal quickly but do not have the cash at hand. They usually process the loans in a few days, and sometimes even in as few as 72 hours. Whether you are a homeowner looking to settle some debts or a property owner that wants some quick cash for renovations and repairs to rent out your property, you are all covered by hard money lenders. You have to be careful though as there are lenders out there who are out to take advantage of you. Maggio Capital is one of many trusted lenders you can go to if you need that quick cash and do not qualify for a bank loan. Here are a few tips on how to choose the right lender.
Check their Fees and Interest
Different lenders have different rates of interest. The rate of interest depends on various factors like the duration of the loan, the type of loan, and the kind of security provided. There are lenders that include added on fees for processing your loan. It is important that you carry out proper research to find the hard money lender with the most affordable package to avoid paying a lot of extra cash. Some even charge an up-front fee to process your loan. Go for lenders that try to keep these fees as low as possible.
Avoid going for just any lender simply because they offer you a reasonable or low-interest rate. Some lenders are out to fleece you and try as much as they can to take over your property. Lenders are required to have proper documentation, covered by insurance and work under strict regulations. These regulations are to ensure that you get into a deal with an establishment you can follow up and get your dues in case of anything. So, take your time and find out if the company you choose is legally allowed to operate as a lender.
Referrals are a great way to find anything. Most adverts are full of lies just trying to entice potential clients. Referrals, on the other hand, are real people’s experiences and have no interest whatsoever with the companies they endorse. If you are served well in a particular establishment, you are more than likely going to encourage a few of your friends to check it out if they require similar services. It is the same case with these lenders. Get advice from those that have already dealt with various of these lenders to get a true and unbiased picture of them.
Availability of Funds
They might be money lenders, but there are times that even these establishments run out of cash to lend especially if they take too long to recover the money they have already given out. Before you get into a deal with any of them, do your due diligence and ensure that they have enough cash to fund your venture. Otherwise, there is no point of waiting for days on end for cash that you probably need in about three or four days.