When it comes to getting fast cash, hard money loans tend to be the best option for people in this situation. However, one should be wary about how they choose a moneylender. You need to ensure that you are dealing with someone that you can trust to avoid getting your fingers burnt in your pursuit of a loan in the shortest time possible. Here are a few things to keep in mind when it comes to dealing with a licensed moneylender.
1. Enquire about their state license: Granted, the business of hard money is not as closely monitored as that of banks. However, by asking for a state license, you reduce the chances of being scammed or having to put up with any unethical procedures. Legitimate moneylenders will have a state license that proves that they are authorized to deal in this business.
2. Enquire about their expertise: When you need money fast, chances are you do not have the time to do as much research as you can to ensure that you are getting the best deal. However, this does not mean that you should not make some enquiries beforehand to rest assured that you are dealing with someone legitimate. One of the things you should ask the moneylender is about their experience in the industry. How many clients have they had? What period of time have they been in business? How many of the deals they have made have been successful? Knowing this beforehand will give you a better idea about the moneylender that you will be borrowing cash from.
3. Enquire about their industry connections: A company that has numerous industry connections is much more likely to get you the money that you need in a timely manner than one does not have any connection. There are numerous sources of funding that these moneylenders use to get money. These sources include mortgage pools, hedge funds, private equity groups and more. The higher the number of industry connections, the quicker they will be able to meet your needs.
4. Look for recommendations: Just as you would have to conduct some research before settling for a company that will offer you a payday loan, you need to seek recommendations for the various moneylenders you are contemplating. Word of mouth recommendations are a good way of establishing a moneylenders business practices as you will be getting this information from the horses mouth. Are their interest rates higher than those of others in the industry? Are there any hidden clauses that you will only get to find out about after you have gotten the loan?
5. Consider dealing with a direct moneylender: The biggest advantage of dealing with this type of moneylender is that you eliminate the need of a broker in the process. Direct moneylenders will be able to finance your loan straight away. However always ensure that you are dealing with a reputable direct moneylender rather than selecting the first one that you come across.
1. Enquire about their state license: Granted, the business of hard money is not as closely monitored as that of banks. However, by asking for a state license, you reduce the chances of being scammed or having to put up with any unethical procedures. Legitimate moneylenders will have a state license that proves that they are authorized to deal in this business.
2. Enquire about their expertise: When you need money fast, chances are you do not have the time to do as much research as you can to ensure that you are getting the best deal. However, this does not mean that you should not make some enquiries beforehand to rest assured that you are dealing with someone legitimate. One of the things you should ask the moneylender is about their experience in the industry. How many clients have they had? What period of time have they been in business? How many of the deals they have made have been successful? Knowing this beforehand will give you a better idea about the moneylender that you will be borrowing cash from.
3. Enquire about their industry connections: A company that has numerous industry connections is much more likely to get you the money that you need in a timely manner than one does not have any connection. There are numerous sources of funding that these moneylenders use to get money. These sources include mortgage pools, hedge funds, private equity groups and more. The higher the number of industry connections, the quicker they will be able to meet your needs.
4. Look for recommendations: Just as you would have to conduct some research before settling for a company that will offer you a payday loan, you need to seek recommendations for the various moneylenders you are contemplating. Word of mouth recommendations are a good way of establishing a moneylenders business practices as you will be getting this information from the horses mouth. Are their interest rates higher than those of others in the industry? Are there any hidden clauses that you will only get to find out about after you have gotten the loan?
5. Consider dealing with a direct moneylender: The biggest advantage of dealing with this type of moneylender is that you eliminate the need of a broker in the process. Direct moneylenders will be able to finance your loan straight away. However always ensure that you are dealing with a reputable direct moneylender rather than selecting the first one that you come across.