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» Exit Strategies
May borrowers who fill out the loan scenario form on Avatar's website do not know what an exit strategy is. Here is a quick definition to help you understand the internal jargon used in hard money lending:
An exit strategy is the plan you have in place to pay off the hard money loan. Hard money commercial bridge loans from Avatar run between one adn three years. The rates are higher than conventional commercial bridge loans. The reasons people request hard money loans is because conventional loans will not work for them at the moment. Determine clearly why a conventional loan will not work for you now.
Do you need to close quickly and conventional banks move too slowly? Is your personal credit score too low? Is your business too new? Does the properyt no meet conventional lenders' criteria? Whatever the reason, determine what you will do to 'cure' that circumstance and how long it will take you to do so, you can obtain a conventional loan. Alternatively, if your exit strategy is to sell the property, indicate that when asked. An exit strategy is simply a workable plan to pay off a loan. Easy to answer once you know.
