Hard Money Loan Closing
In this guide, we will cover hard money loan closing. Many people do not realize how easy and fast it is to qualify, get approved, and have a hard money loan closing. If you’ve been reading our blogs, you know that checking titles is essential to ensure a deal will go. We have two right now where there is an IRS lien that needs curing, and for some reason, the IRS office doesn’t know how to write a proper payoff letter so that the title company will close and record the deal. Why would this be such an issue?
In hard money lending, there’s always an element of flexibility needed to get to the result; a hard money loan closing. For that to happen, the underwriter of a company or the lender needs to know as much about a property as possible to issue a clear close for the hard money loan closing.
Not so much that the title company is nervous, but the IRS doesn’t know how to do its job…?? If someone from the IRS comes and says sorry, you can’t let this go through. Then the deal is off. If a court comes and says something similar, a closed loan gets rescinded by court order, and that deal is gone as well.
Solutions To Get Too Hard Money Loan Closing
One way or another, you need to be ready to be flexible. Now this is for both active and passive investors. As a private lender, you want the deal to be as “Vanilla” as possible. But, come on now, if that were the case that it was a “no brainer” don’t you think that borrower would have gone to a bank? (at least the newbies would).
You got into this to make higher interest rates than banks charge by lending to people with less-than-perfect credit, and you KNOW that they are hoping you’ll lend on the merits and value of the property.
You have a few options: You can walk away from the deal (this is for both investor and lender), or you can negotiate with the IRS to be sure that something viable and acceptable by title can be written so that you can move to close. (Be ready to do a lot of back and forth with this option) You could move the deal to a different property and go for a loan on something completely different, showing that the other deal was a waste of time. (not highly suggested, but sometimes the only option leftover so no one loses out)
How To Get Hard Money Loan Closing Fast
As a borrower, you need to keep your head outside the box but not so far that a private lender won’t get what you’re trying to do. We get that a lot; unrealistic borrowers are what we call them. They want higher LTV lending, and when they get to us, the cost is high, the LTV isn’t enough, and they want to make no money. Etc.
Here’s what it means to be Savoir Faire; being flexible and amenable to the seller so that a real opportunity can be vetted into a deal. Then, you take that opportunity to lend to someone like us, and we vet the property and a bit about you so our investors can see we’ve already figured out a bit of the savoir-faire for them and yet still have a secure deal. Then they lend.
You get your funding, and the deal is done. Hopefully, you’ve figured out your MAO properly, so you’re netting at least 30%. It means being flexible, ready for anything, checking everything within reason, and choosing to do business. Then when it’s all said and done, you are considered an investor with savvy and savoir-faire. Not an easy title to attain, but quite doable. Lending Network, LLC is the largest and fastest-growing commercial lender in the country. Over 80% of our borrowers at Lending Network, LLC could not qualify at other commercial lenders. By far, Lending Network has the biggest selection of hard money lending options for investors.
