Mission Viejo, CA (PressExposure) February 04, 2011 -- The credit crunch has left Commercial Hard Money Lenders unsure of whether to step up the lending or tighten their belts in the past few years.
Most of them have chosen the latter, raising lending standards and refusing borrowers they would easily have accommodated before the recession. This has prompted the public to seek credit elsewhere, and many have found Commercial hard money loans, also known as private money loans, to be a viable alternative.
Hard money loans are backed by the borrower's assets and don't require extensive credit checks, as their conventional counterparts usually do. This allows borrowers with poor or nonexistent credit to obtain financing, or those with more urgent needs to skip the lengthy processing.
Not surprisingly, 2010 was a big year for Commercial hard money lenders nationwide. But will 2011 change things for the better and reduce demand for hard money loans?
Most experts don't think so-in fact; many of them believe the next twelve months will bring more business for today's hard money lenders. They point to a combination of economic factors, such as unemployment, delinquent mortgages, and credit troubles, which can drive a typical consumer to seek help from sources other than the bank.
Commercial Hard money lenders offer a last resort so they can save their home or settle past-due payments.
HardMoneyTree.com, a site that matches hard money lenders with borrowers, has added more and more lenders to its network in the last few months, a sign that hard money firms are seeing more demand for their services.
To better cope with increased business, the site now also includes guides for commercial hard money borrowers, professional tips and advice, and news updates that cover developments in the private money industry.
As the real estate market continues to slump, property investors are also expected to jump on the trend and snap up cheap properties. As their needs tend to exceed what traditional banks are willing to lend, they often turn work with hard money lenders to finance their investments.
Real estate flippers, who buy up properties and quickly resell them for profit, are expected to make up much of the action in hard money lending this year.
Borrowers interested in taking out hard money loans, or lenders looking to expand their network, can join HardMoneyTree.com to find new opportunities. The site brings together the country's biggest hard money firms and helps borrowers get in touch with the right lenders.
HardMoneyTree.com also offers valuable resources for both lenders and borrowers, allowing them to better understand the business and make the right decisions.