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Better Home Solutions - Here For You - 423-948-0987

Our Company, Building Better Business LLC, is now Funding Flips in the Tri-Cities and Chattanooga Area.
We're here to help you grow your Flip Business.

Click here to access a Uniform Loan Application
 
Benefits of Hard Money Loans:
  • Commitment Letter issued to borrower
  • Dependable and timely issue of funds
  • Clear and consistent documentation of transactions
  • Flexibility
  • Rehab Specific Resources
  • Top Problem Solving Lender
  • Less Fatigue, More Fun
  • Have Control of Your Own Financing Plan

 
When does it make sense for flippers to use a hard money loan?

In our experience, even investors/developers with strong financial statements and access to bank credit frequently choose to use private money loans (also called “hard money loans”). Situations where private money loans make the most sense include those where the borrower:
  • Requires a quick closing and banks cannot meet the deadline;
  • Has more good opportunities than cash;
  • Wants to avoid spending too much time raising equity or debt from many different smaller investors, but prefers to instead focus on finding new opportunities;
  • Lacks the patience or time to deal with¬†the bureaucracy¬†of securing a loan from a bank;
  • Has an excellent investment opportunity, but does not have sufficient financial strength to get a bank loan, and/or;
  • Has a bank line of credit but needs a larger loan than is allowed under the existing bank line.
The common theme is that there is an opportunity for the borrower to generate substantial profit (or savings) quickly, and the cost of interest and origination fees is small relative to the anticipated profit, even given the higher interest rates charged by private lenders versus banks.

Click here to access a Uniform Loan Application
 

What are other names for hard money loans?

Hard money loans are also sometimes referred to by the following terms: (1) private money loans; (2) bridge loans; (3) short-term loans; (4) transitional loans; (5) asset-based loans; (6) rescue loans.

 

What are advantages of hard money lenders? 

Hard money loans can have a number of advantages over traditional bank financing including:
* We have a simpler application process and quicker approval/disapproval decision;
* Less scrutiny of the borrower’s personal financial situation is necessary, including income and historical tax returns, compared to bank loans;
* Borrowers can allocate less time to seeking financing and instead concentrate on other business;
* Borrowers can avoid spending many hours of work ending in a denial for funding and being rejected by a bank;
* We do not expect perfect credit and substantial amounts of disposable income from borrowers, but instead focus on the merits of the specific property under consideration;
* Self-employment is acceptable to private lenders, whereas many banks view self-employment negatively and strongly prefer lending to professionals with very steady W-2 income.

 

What are some disadvantages of your loans? 

* Private money loans are more expensive than bank loans, with higher interest rates and origination fees

 

What kinds of property do you lend on? 

We lend on both commercial and residential properties, however,  we do not lend on owner-occupied residences due to legal restrictions.

Click here to access a Uniform Loan Application

What should I expect if I use your loans?

A borrower might consider using a private money loan in situations where he or she is willing to pay a higher interest rate and/or higher up-front fees in order to benefit from:
  • Access to capital quickly
  • Ease of transaction
  • Less bureaucracy, paperwork and costs associated with conventional bank financing
  • More transparency during the application & lending process,
  • Access to capital to pursue an opportunity that banks will not finance, either because they are unwilling or unable to do so (such as distressed properties).

 

How do I get a private money loan?

The best way to secure a loan is to know or be referred to our company, Building Better Business LLC.  It’s also acceptable for the prospective borrower to simply call and describe the nature of the project for which capital is desired. When presenting a project to us, the borrower should be prepared to provide the following information:
  1. Deadlines and dates which are critical to the transaction
  2. The specific property address;
  3. Whether the loan is for a property acquisition or refinancing of an existing loan;
  4. The purchase price of the property;
  5. The intended renovation budget;
  6. The intended asking price for the property upon resale or After Repair Value (ARV)
We hope this answers a few of your questions.  Please feel free to email additional questions and we will quickly respond.  It is our hope to provide value that will help you  your  "Flip" business.  

Click here to access a Uniform Loan Application