Hard money lenders in all types of real estate and construction projects will only approve loans when certain criteria are met. If you are choosing to seek a hard money loan, you should know that certain projects catch the eye of investors and bankers faster than others, and it is usually these projects that lenders want to back. If you meet all of the required criteria, here is how your project might be the one a lender likes and approves of for a loan. (The following projects are examples of things hard money lenders usually want to back.)
Multi-Million Dollar Refurbishments of Hotels and Commercial Skyscrapers
Anything that can generate money daily and is visible to the rest of the world is something investors and hard money lenders are interested in backing. If this applies to your project, be sure to outline why refurbishment work needs the money, and why the work has come to a grinding halt (if the work has already been started). The lenders will want you to use the unfinished property to secure the loan in the interest of obtaining the property for themselves in the event that you cannot repay your debts or the project fails. If the project succeeds, investors expect that repayment of the loan(s) will begin as soon as the property starts generating income.
Hospitals are constantly trying to expand, but finding the finances to build a children's hospital on the property or add a very large section of medical professionals' offices can be extremely challenging. Hard money lenders like the idea of lending to hospitals because it gives them a chance to become a public figure and prominent members of the community. Usually, the property that secures the loan is part or all of the property belonging to the hospital, but since hospitals never default on their loans, they are a very safe investment for exceptionally good causes.
Any Building or Organization Related to Children
Lenders often want to be the benefactors of the future. Children are often seen as the future. Hence, it is no surprise that hard money lenders want to be involved with projects related to children. This might include playgrounds and splash pads that are accessible to all kids, or it might include building a preschool or daycare devoted to terminally ill children that provide some respite to parents who need a little break sometimes.
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