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Looking For a “Save My Butt” Loan?

Most of the loans from any hard money financing cooperative are “save-my-butt” loans, essentially. Because of the situation that many business people find themselves in with one bad risk assessment decision, embarrassment is often the first emotion. Putting emotion aside, hard money mortgage is sometimes the need of the hour.

For those who think that a hard money financing solution is on par with a shark bite, embarrassment bleeds into fear when they make that first application. Regardless of how long you’ve been in charge of the company or how successful you’ve been in the last ten years, a sudden unexpected event can turn your cash flow into muddy tides.

Choose the Solution That Works Best

If you are in a situation where your company only needs money to take care of the current cash flow problem, then you might want to consider an Invoice Factoring solution rather than a loan. By selling some or all of your outstanding account receivable invoices, you will be able to raise some fast cash.

Factoring is based on your customers’ credit and ability to pay rather than yours.

Perhaps, you have mechanic liens on properties that may not sell immediately. This is essentially another form of factoring that result in future assets transforming into hard cold cash.

A third solution that takes the place of real estate loans are the contract for deeds, buy-outs or loans as an option. This type of loan can produce temporary gains with terms that allow you time to pay off the contract or relinquish the deed. Because hard money lenders have huge real estate networks, both solutions can become a matter of negotiation.

Finally, a Bridge Loan which is created to bridge the gap between current cash flow and future income that is equal to or greater than the loan may be the way to go for you. Generally, these are shorter term loans, available for 6-months to 2-years on average and are true with all hard money financing, with tangible property assets securing the loan.

When Hard Money Real Estate Loans Are the Best Option

There are just some circumstances where a real estate loan is the best option since the payment plans are stretched out further than with a bridge loan, producing more cash than other options.

  • Real estate investment property financing

  • Real estate note refinance loans

Primarily, these are the typical loan methods used when a bank or mortgage company is dragging their feet and your cash is depleting with every passing day.

Some bridge loans also fall into this category but only when there is already known approval from a traditional lender. Don’t be led astray by the horror stories about private financing that went sour.

Most hard money lenders commercial loan companies are corporate officers in their own right and know how difficult asking for a non-traditional loan can be.

Do you need a Hard Money Loan for your next real estate purchase or refinance fast?