FREQUENTLY ASKED QUESTIONS
Why would I use an Equity/Hard Money lender?
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Newmark Investment, Inc. can provide the financing that you are looking for without the red tape and bureaucracy that is prevalent with most banks and lending institutions. We also look at borrowers from a different perspective. We can quickly evaluate the borrower’s equity position and goals to help them achieve success.
Where does the Money come from for an Equity Loan?
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The funds come from private investors who are looking to make equity loans. The source could range from one individual to a group of private investors who each fractionally invest in the real estate loan.
Is Equity/Hard Money expensive? If so, why?
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In general, private/hard money loans are more expensive than bank loans for a few reasons:
1. Speed:
The speed in which a decision can be made and the loan funded is a fraction of typical banks and lending institutions.
2. Flexible Terms:
An Equity Loan can be structured any way that is acceptable to the borrower/broker and lender.
3. Credit:
Equity loans are based primarily on the equity position of the borrower's real estate. Credit scores are not the main factor in Equity Loans. Loans can be arranged for individuals without established credit or a credit score that is unacceptable to banks and institutions.
Is Equity/Hard Money only for desperate borrowers?
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Not at all. There are numerous transactions that just don’t fit the conventional lending mold and equity/hard money loans are just another means of financing these transactions. Commercial Loans, Bridge loans, Land loans, and Non-Conforming real estate are all examples of difficult loans to get from a bank.
How long does it take to close a loan?
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On average closing is a 10-15 business day process. However, if we have all the documentation, such as appraisal, escrow instructions, proof of insurance, and a clean preliminary title report, we can close in as little as 5 days. Each transaction is handled on a case by case scenario. If there is a special requirement, we may be able to accommodate you.
What if I have a bad credit score?
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With Newmark, there is no FICO requirement. We may still fund your loan. The final decision is not made on your credit score, but rather on the equity of your property.