Glassridge Frequently Asked Questions
Index of Questions:
- What are your hard money loan rates?
- What are the requirements to qualify for a Hard Money Loan?
- How fast can you close on my loan when I find a good deal?
- What are the most common reasons Hard Money Loan Applications get denied?
- How do Hard Money Lenders differ from Bank Lenders when qualifying for a loan?
- Can I use a Hard Money Loan to buy “Cash Only” listings?
- Can I use a Hard Money Loan for Rent-To-Own investment properties?
- Why do we categorize Apartment Building Loans as Residential Financing?
[our most frequently asked question!]
The biggest challenge to answering this question is that we offer a very wide variety of Private Hard Money Loan options, from short-term Fix & Flip Loans to permanent Commercial Real Estate Financing (and everything in between).
Here are the 4 main factors that will influence the rates & terms you’ll receive as a Borrower…
The requirements to qualify for Hard Money Loans vary widely. From location to location, Borrower to Borrower, and property type to property type, the criteria for each unique Loan Program will differ, sometimes even on a case by case, neighborhood by neighborhood, day to day basis.
One thing is certain: a Private Hard Money Loan is going to be easier to qualify for than typical bank financing, and since it’s asset-backed (secured by equity in the property), it will also be the most flexible type of debt financing you can find.
While it’s impossible to say the exact criteria to qualify for your specific Hard Money Loan scenario, we do have 7 Qualifying Criteria™ that are the standard factors we at Glassridge consider when Pre-Qualifying a prospective Hard Money Loan.
Not every loan is the same, so when asking “How fast can you close on my real estate investment loan?”
The short answer, unfortunately, is:
To keep things simple, we’ve boiled it down to the 3 most important factors upon which your loan’s fast closing depends.
There are probably hundreds of narrow, highly specific reasons a private loan will get denied, but after seeing thousands of prospective borrowers, we can easily narrow it down to the 3 most common reasons people get denied & are unable to close on a Hard Money Loan.
Number one is by far the most common: Lack of Liquid Cash on Hand.
Hard Money Loans are typically a bit easier and quicker to qualify for and close on than Bank Loans.
While both loan qualification processes are similar, involving submitting certain docs on the Property & the Borrower, there are several key contrasts which we’ve narrowed down to the 4 most important differences that make Hard Money Lenders stand out from Bank Loans.
This is a great question, because the simple answer is:
You can use Hard Money Loans to buy properties where the listing says “Cash Only” or “Cash Buyers Only.”
In fact, getting access to leverage on these “Cash Only” deals is one of the best uses of Hard Money Loans, and can give you a competitive advantage over those who are ignorant to the possibility.
While the simple answer is indeed a resounding “Yes!” the more complicated answer is more of a:
If you’re a qualified Borrower and The Deal Itself looks good, it should be pretty easy. In fact, it probably won’t matter much whether you intend to offer the property on a Rent-to-Own basis, or just a more standard lease.
The simple answer is that Apartment Buildings are Residential, from the tenants’ perspective.
People live there.
The long answer:
Obviously, according to most conventional wisdom, an Apartment Building is technically a Commercial Property…