In the financial world, there are very few situations where a lender won't first run a credit check. Think of the last time you bought a car, refinanced a home, or applied for a credit card. In each of these instances, someone reached out to a credit bureau to get a report on your entire financial history. This score encompasses a range of factors including total debt, repayment history, length of credit history, and more to build a one-size-fits-all metric. For all intents and purposes, your credit score is a raw value that describes your trustworthiness as a borrower. The higher the score, the more likely you are to pay back your debts.
Though this score may be the best tool creditors have at their disposal, it is not perfect. Everyone has circumstances in their life that affect their credit for better or worse. In many cases, this means that the score isn't an accurate reflection of who the borrower is today. This can close doors to opportunities and can be an obstacle to building savings or creating lasting wealth.
At The Hard Money Co., we don't believe that credit should be the deciding factor in whether you can pursue your real estate investing dreams. When you apply for a loan through us, we will not run a credit check. We assess the specifics of your investment strategy and work to build a relationship with each borrower that goes beyond a number.
Asset-Based Lenders Don't Perform Credit Checks
The Hard Money Co. is an asset-based lender, which means we don't care about your credit history. If the deal you are working on makes sense and is backed up by a sound investment strategy, we will work with you. This means that every investor has the potential to pursue profitable opportunities and create a successful real estate investing career.
As part of our internal process, we do a comprehensive assessment of your deal to determine the likelihood of success. After your application is submitted, our team performs a Comparative Market Analysis (CMA) to see what similar properties in the area might sell for to arrive at an After Repair Value (ARV). These values, combined with the purchase price and the repair scope, give us a clear picture of the quality of the investment. We will not lend on properties that we believe might fail. This is why it's important that borrowers fill out the application accurately and completely. It proves to our analysts that your deal will be successful. At no point do we consider your credit score when determining whether or not to lend.
Performing a comprehensive review comes with some major benefits. First and foremost, our review process adds a level of security to your investment. Our approval of your loan application signals that we believe your investment has the potential to be profitable. Our internal review will raise any red flags, prompt you for additional information, and ensures you've considered every possible angle. This adds a level of security that other hard money firms do not offer.
More importantly, it establishes a relationship. We learn your deal inside and out and begin the process of working with you. For the duration of your project, we will be by your side to review your renovations, provide repair funds, and guide you as you sell or refinance the property. Our expertise becomes yours as you navigate the world of real estate investing.
The Hard Money Co. is Your Real Estate Partner
Traditional lending institutions have no interest in whether or not you will be successful in your investments. The only thing that matters to them is whether or not you will pay back your loan. This is why a credit score is so important to them. If you've shown you can make timely payments, they will lend to you. Credit scores reduce you to a number, which is all you will ever be to them.
The Hard Money Co. is different. We see our lender/borrower relationship as a partnership. This means ongoing communication, timely distribution of funds, and a collaborative 'hustle' that will lead to success. Our business is built on these relationships which is why the majority of our approved applicants become repeat borrowers. They find immense value in everything we bring to the table, and we help them achieve their goals. This foundation of trust removes the need for credit checks because we know you and your deal beyond the numbers.