How to Get a Hard Money Loan with Stratton Equities
Stratton Equities has created a simple and easy process to receive a Hard Money Loan for your Real Estate Investment needs. We have an array of Hard Money loan programs that are designed for any type of Real Estate Investor to meet all your mortgage needs. It doesn't matter what your loan scenario entails our quick and efficient approval process ensures that you get approved in a timely fashion with a dedicated Loan Officer working with your investment property.
The 3 Steps to get a Hard Money Loan
Step 1: Find a Reliable Hard Money Lender in Your State
When looking for a hard money loan for your real estate investment property, it's important to find a reputable hard money lender in the state your property is located. If you are looking for a hard money lender because you have been rejected by a bank, then you might rush to the first hard money lender you can find to get your loan quickly. Stratton Equities, the leading nationwide direct private and NON-QM lender, has the most diverse array of hard money loan programs Nationwide.
*Our dedicated team of knowledgeable and experienced loan officers are here to help you with your loan scenario and provide you with the best possible hard money loan for your real estate investment property. We will walk you through Hard Money Loan process while showcasing the details of the loan, how the loan will best assist in your specific property, and cater a hard money loan that satiates your real estate investment needs.*
Step 2: Apply for a Hard Money Loan
If you are ready with your Loan scenario and are prepared to apply for a Loan, it's important that when filling out a Loan-Approval Application you have the following information;
Property Type (ex. Commercial, Multi-Family, Mixed Use, etc)
Rehab/New Construction Budget
Target Closing Date
Also, it's important that you have any additional documentation needed to submit your loan for instance a W2, Background Check, etc. For a complete list of documentation needed please check out our Stratton Equities' Document Library for all your Hard Money Loan Approval needs.
*When a loan scenario is submitted through our loan-approval application process, a dedicated loan officer will get back to you within 24 hours and remain in constant contact with you throughout the loan process.*
Step 3: Receive the Hard Money Loan
As this type of loan doesn’t have as many restrictions as one might think considering that it’s just money, so no more having to worry about bankruptcies, foreclosures, collections, etc!
Due to the lack of guidelines and underwriting, a true Hard Money Loan is generally capped at 65% LTV or less. For example, let’s say you have a home worth $1M, if you want $500K against it (50% LTV), you’re able to receive the money within 1-2 weeks (from day of application), commonly as a first lean position - because it’s just money. It’s normally in the form of a Bridge Loan, which is short term financing in a period of 12-24 months.
It's true, hard money is expensive, with lots of risk...so why would you use it as a viable loan option?
Hard money is the solution for borrowers who cannot get traditional funding when they need it, for instance they might have bad credit, no credit, going through a divorce, etc. This type of unconventional loan helps those who could not receive the help they required and in many cases - it changed their lives.
In the position of the lender, which in this case would be Stratton Equities, we are focused on collateral and less concerned with your financial position. However, this particular loan closes quicker than a traditional loan as it has less guidelines and underwriting, which speeds up the application process - since we don't have to review your bank statements or verify your income.
Utilizing a hard money loan, allows us to have a relationship with our borrowers and real estate investors. It gives us, the lender, the ability to close deals that others can’t close in a market that’s usually inundated with multiple offers.
Private Money Lenders prefer a hard money loan because of it's flexibility. The hard money agreements don't use a standardized underwriting process but they evaluate each deal individually.