Hard Money Equity Loans in the Caribbean
There are times when getting financing is vital to the success of your business; having said that, its not always a great time to borrow the money (speaking from a banking perspective). This is the time when hard money loans are so important; we get you the money you need quickly and easily without all the red tape and qualification issues of the bank.
Equity loans are generally a short term financing solution in order to fix a short term capital issue. These loans generally run at a higher rate, but without all the strings of a bank mortgage. Due to the difficulty of borrowing bank money in the Caribbean and much of the Americas, these bridge loans are becoming more and more common.
How Much Equity do you Need for a Hard Money Loan in the Caribbean?
Deals are always reviewed on a case by case basis however the magic number is generally considered to be 50%. For higher risk projects, you may require even more equity in the project. These loans are seen as higher risk, so equity is key for the lender to give them the comfort they require with your loan.
It is all about ‘skin in the game’, and the lender wants to see that you have lots of it. They want to know that you are not going to walk away from your investment if things get tough.
Are True Hard Money Loans Possible in the Caribbean?
This is a tough question to answer, as it really depends on the size of your loan requirements and the amount of equity in the property. Often our lenders will require some type of income confirmation even if it shows you don’t make enough money to service the loan. Lenders want to know you have the wherewithal to make the mortgage payments, they don’t want to own your property.
On smaller loan requests, we often have private investors who are willing to look at ‘true’ hard money loans. This is highly dependent on the location of the request however, as we do not have private lenders in all regions.
If you are in need of short term capital, talk to us today about your situation / property and let us source the funds you require. We can generally fund within weeks of getting your loan package, and can arrange loan terms which will work for you.