Credit score and history can play a vital role when it comes to approving loan applications. There is a very slim chance that banks will grant loans to individuals with bad credit history. This is why hard money lenders can help those real estate investors who have bad credit.
Scottsdale, AZ -- (SBWIRE) -- 12/21/2015 -- According to 2015 American Household Credit Card Debt Study, an average US household has $129,579 in debt and $15,355 of it in credit cards. Well, another report from the Corporation for Enterprise Development states that 56% of consumers have sub-prime credit scores. This means that more than half of the population is unable to take advantage of best or average interest rates, whenever they need money.
One of the main reasons behind bad credit influx is due to the recession which took away jobs of many Americans in 2007. Bad credit is more apparent in today's economy because of the recession. People who have good credit often times have a bad credit experience during this time, such as a short sell or foreclosure.
Investment in real estate is a great option to combat a bad credit situation. Some of the best advantages of investing in real estate are:
Gain more leverage: Real estate provides high return on investment. One can easily purchase properties using a smaller down payment, as low as 20%. A Real estate investment loans for bad credit is the only option as hard money lenders fund on the basis of the property's value and not on the credit history of the borrower.
Long term rentals can be a guaranteed retirement plan: Most people like to invest in property that will provide assured returns. Investment in long term rental properties is undoubtedly a major commitment, but the majority of people choose this as it is an unending cash flow.
Researching a hard money lender is easier: Before making a huge investment, individuals need to do research, in order to be sure the return is high. One can easily search for a lender online and contact them immediately for fast approvals.
Total Control in your Investment: Investing in different industries like the stocks and bonds can require hiring a middle man to use grow your investment portfolio. Investing in real estate property and obtaining a hard money lender allows you to work with a qualified direct lender who handles the entire process of approval to the loan funding.
Flexible Loan Terms: There are a wide variety of loan programs offered by lenders today. While some lenders over a lower interest rate and longer terms, they might ask for guaranteed interest, or a pre-payment penalty. This allows a return for the investor no matter how quickly they pay off the loan. A hard money lender will be able to direct you to the right program for you based off your needs for the loan.
Apart from being an incredible source of income, real estate property investing also provides value on the basis of which an individual can claim a loan. When it comes to monetary transactions, it is necessary to borrow money from a trusted hard money lender like Hanson Capital Group. Browse through the options based on individual requirement and get the right financing in just a few steps.
About Hanson Capital Group
Hanson Capital Group specializes in lending hard money on collateral base in real estate market since 2008. The company is also deals in out of state transactions. To apply for hard money loans please call 480-685-4923 or visit hansoncapitalgroup.com.