Avatar's Blog
» Hard Money Exit Strategies
Posted on 6/4/2005
The three questions hard money lenders ask about any loan include: what
isthe value of the subject property, how will the borrow make the
monthly payments, and what is the exit strategy for this loan?
The last question is as important as the first two. Avatar funds hard money bridge loans with terms of one to three years. The reasons why people seek out hard money, which is arguably more expensive than conventional long term real estate backed (mortage) loans, are varying. All contain some reason why conventional loans are inappropriate at the moment. The borrower must have a clear strategy for whatever current conditions exist that make alternate financing impossible or inadvisable within thirty six months' time.
When submitting your loan application, be sure to include a clear exit strategy containing what conditions exist today, what you will do to alter them and the timetable for refinancing.
Posted in Miscellaneous
The last question is as important as the first two. Avatar funds hard money bridge loans with terms of one to three years. The reasons why people seek out hard money, which is arguably more expensive than conventional long term real estate backed (mortage) loans, are varying. All contain some reason why conventional loans are inappropriate at the moment. The borrower must have a clear strategy for whatever current conditions exist that make alternate financing impossible or inadvisable within thirty six months' time.
When submitting your loan application, be sure to include a clear exit strategy containing what conditions exist today, what you will do to alter them and the timetable for refinancing.
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