Avatar's Blog

» Qualifying Your Income on a Hard Money Loan

Posted on 10/26/2004
Recently, I saw a loan request for the purchase of a motel. The borrower also owned the land next door. It looked like a weak loan, not likely to meet lending criteria. A quick call to the broker revealed that the borrower also owned a casino in the same county which nets enough in a month to cover the annual interest payments on a hard money loan for the B&B. The borrower wanted a 90 - 120 day hard money bridge and already had the take-out financing in place.

The 'story' behind the loan revealed a lot more equity, income, and financial viability than the simple statement that someone wanted to buy a B&B. When filling out loan applications, be precise and be thorough. Take the time to clearly think out and provide the full 'story' about your loan. You and your project may be a lot more qualified than you think.
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