Everything You Should Know About Hard Money Loans-converted
                     Everything  
You Should 
Know
About Hard 
Mon2e625y Ea st  1L4 Sot. Suaite ns
209  Brooklyn, NY, United 
States  11235
[email protected]
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www.expresscapitalfinancing.co
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Hard Money Loans & 
Distressed  
Properties
The Perfect 
Match
A distressed property is one that is being listed by the h ard 
money
 lender or has entered into the foreclosure process. There is a 
 multitude of reasons why a property is classified as being  
distressed, but regardless of the cause, this type of real 
estate  presents a significant opportunity for savvy investors 
to get an  ideal purchase price and considerable profit. If 
you’re  contemplating acquiring a distressed property, but 
don’t have the  capital on hand to complete the transaction 
at this time, here’s a  few compelling reasons why you should 
use a hard money loan to  get the funding you need in a short 
amount of time so you don’t  miss out on a great deal.
Pros of Acquiring 
Distressed  
Properties
Prior to obtaining a loan, it’s essential to comprehend the 
overall  benefits of acquiring a distressed piece of real estate. 
When a  lender repossesses an asset, they are typically 
looking to offload it  as soon as possible so they can recoup 
the initial investment they  made in the form of the loan. This 
urge to quickly sell the property  usually means that the listing 
price is much lower than you might  otherwise be able to 
afford in a given location. Additionally, more  often than not, 
investors will generally be able to realize a  handsome profit 
by making renovations and upgrades to increase  the home’s 
attractiveness to subsequent buyers on the market.
The sale can potentially be completed in a short amount of 
time,  and if you’re able to keep the rehab window short, you 
can repay  your hh a r d
 m o n e y  l o a n s  n e a r  m e  quickly and avoid 
substantial  interest fees. Here’s a closer look at why you 
should consider a  hard money loan for funding the 
acquisition of a distressed  property.
Quick Approval 
Process
One of the most favourable aspects of hard money loans 
nyc is  that they are significantly faster than conventional 
sources of  funding. Your credit score doesn’t weigh as 
heavily into the  approval process—alternatively, the 
property’s valuation is most  important as it is used as a 
collateral asset to secure the loan.
From an investor’s perspective, this is ideal as you can have 
access  to financing in a matter of days as opposed to the 
months it  typically takes in order to get approved by a bank 
or similar  lending entity.
Enhanced Buyer 
Profile
Hard money loans enable investors to have cash in hand to 
offer  to the distressed property’s seller, which can be 
extremely useful  if the property is a hot commodity and there 
is a lot of competing  offers being submitted. Having the 
ability to offer cash provides  real estate investors with a 
certain degree of leverage when it  comes to the negotiation 
process, and the entire loan process can  be completed in a 
short amount of time. This allows investors to  pounce on last-
minute deals—giving them a distinct advantage  over the 
competition in up-and-coming areas where other  investors 
are looking to land deals.
Ideal LTV 
Calculations
An additional benefit of going the hard money loan route is 
that  the loan-to-value (LTV) calculation differs from those 
conducted by  conventional lenders. This means that 
investors may potentially  receive more funding than they 
would from another lending  entity, even though the LTV ratio 
may appear substantially lower  initially. Conventional lenders 
are required to follow certain federal  guidelines by tabulating 
loan amounts from the purchase price or  appraised value.
Hard money lenders, however, have the flexibility to choose 
the  value they want to utilize for the LTV, as they do not 
have to abide  by the federal rules. That means hard money 
lenders factor in a  higher property value, and, depending on 
the particular  circumstances of the given transaction, may be 
able to consider  the value of the property after the 
renovation process is complete
—or the “After Repair Value” (ARV) as opposed to the 
current  value. The end result of this process is that real 
estate investors  are often able to obtain the funds they 
need both for the initial  acquisition of the distressed 
property, but also money to make  the desired repairs.
Express Capital Financing is a direct/nationwide lender of 
bridge  and hard money financing as well as small and 
large balance
 commercial mortgages. If you are looking to partner with a 
hard  money lender, Express Capital Financing offers pre-
approval  letters within 24 hours. We’d love to connect with 
you!
2625 East 14 St. Suite 
209  Brooklyn, NY, United 
States  11235
[email protected]
m  
www.expresscapitalfinancing.co
m