Hard money loans are extremely helpful in financing real estate investments quickly and easily. Hard Money Loans are one of the best options when we can’t seem to qualify for a bank loan. We all know that hard money loans are not as stringent as the bank loans. Therefore, that makes it a lot easier for scammers to lure in potential borrowers. That is why when it comes to borrowing hard money loans, it is more than necessary to look out for scams. It is not always visible upfront if it is a possible scam or the real deal. But if you look into it and dig a bit deeper, some hints clearly scream “SCAM!”. Here are few such hints to help you stay away from such hard money loan scams.
Do the loan terms sound too good to be true? In many scam cases, that holds true. Hard money loan interests are almost always higher than those of conventional loans. Better watch out if you are offered rates that are very low compared to those of the market right now. Moreover, hard money loans offer LTVs up to maximums of 70% and will not fund the entire loan completely. That is to give the borrower more reason to work towards the success of the investment. Keep these points in mind when checking if a deal is too good to be true.
Next up, the lender’s reputation. Is the lender unknown or uses many different names? The reputation of your Hard Money Loan lender tells you a lot. Poor reputation leads to doubts in the borrowers’ minds. Well-known and consistent lenders can expect borrowers to have faith in them. Always make sure that you do a background check on the lender in question. That will help verify that their reputation is not questionable.
Looking for a Deerfield Beach Hard Money Loans provider that can help fund your real estate investments fast? BridgeWell Capital is the trusted name in the business from whom you can request funds right away. Call now, fax or apply online!