Since hard money loans are stringently based on collateral, much of the paperwork is disregarded because checks for credit and other factors are few. Time required for a loan is reduced from weeks to a few short days, which enable one to have the funds needed sooner. A real hard money lender is interested in just the property and the worth of it. If he/she is interested in the person’s credit history, then he/she isn’t a real one. So, one should reject any hard lender who is asking for different documentation related to one’s credit history and other personal detail related to one’s job.
Most of the hard money lenders only lend up to 70% of ARV and if they are lending more than that, they are harming not just themselves but their clients as well. The ARV includes the rehab costs. However, the calculation of an ARV can be quite tricky sometimes. It is essential to be sure that the lender is using knowledgeable real estate people to compute this ARV and these people are appropriate for the area, where the property is held. Otherwise a lot of money could go down the drain.Visit http://www.hardmoneyman.com/hardmoneylenders.htm for more.