When applying for a hard money loan, what should you consider?

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You guessed it! The exit strategy!

The exit strategy is a key determining factor for most hard money lenders on whether or not the loan is doable. The exit strategy must make sense.

Consider the exit strategy and implore the techniques here to ensure your exit strategy is a viable one. If not you might need to find another property or loan scenario.

If a borrower’s exit strategy is to rent and refinance the subject property, the hard money lender is going to want to know if the borrower is creditworthy to obtain a refinance loan in order to accomplish the exit strategy. If the borrower has bad credit, a recent foreclosure, judgments, etc., an exit strategy of refinance is probably not plausible because the borrower is not creditworthy enough to receive a loan from a traditional lending institution

Do you have hard money loan tips or questions?