Business owners and investors struggle to grow or fail to make the move to the next level due to the lack of sufficient funding resources to finance the taking up of investment projects in foreign countries. In order to profit, an investor needs not only capital at reasonable cost but also the ability to secure it in a short period of time. For international deals, the sources of financing are very limited, unless you are a large and well known company. Due to this many investors fail to secure the necessary international financing they need to follow through on an overseas opportunity. But there are a limited number of hard money lenders who finance international property development and investment ventures.
Countries preferred by International Hard Money Lenders
The country or the location where the international investment opportunity is present plays a major role in the approval of a international loan. The countries that most lenders of international hard money prefer are Canada, UK, Caribbean, Mexico, Europe, China and other countries that have good, friendly relationship with USA. Other countries may also be considered for hard money loan, but these countries are the most common ones.
Various Types of eligible international projects
Hard money lending on real estate is primarily based on the collateral and assets supporting the loan. Depending on the specific parameters of a particular project, the terms and conditions of the loan may vary. Most of the projects that are considered for international funding by a hard money lender usually fall under the following: Road and Infrastructure Projects, Commercial and Residential property development, Oil & Natural Gas related plants, Power Generation, Ports, Refineries, Hospitality (Hotels, resorts) Projects and Recreation/Entertainment establishments. As the risk profile changes according to the type of project being undertaken, the range of interest rates, Fees, loan term and collateral requirements also differ accordingly.
Loan process and Research
To successful find the necessary funding from a international hard money lender, a number of steps need to be taken. A thorough business plan which presents all aspects of the international project needs to be presented to the lender. As there is a need for significant due diligence to evaluate all information related to an overseas project, many international hard money lenders only consider large projects managed or promoted by investors with prior experience in handling similar projects in the country before.
Lenders in the country where the proposed project is located may also be approached for financing, in conjunction with financing from a hard money lender. Projects with limited operational risk taken up in a friendly country can expect to get the necessary funding, but an investor needs to begin the process of seeking financing much before than he would on a hard money loan for a domestic project. Since the research involved can drag for months, a healthy head start can help investors avoid delays and get the necessary financing by the deadline.
Finding the right international hard money lender for your overseas project
It is quite difficult to find the right lender for your international project. In our hard money lender database, we have specifically created a section for lenders who actively finance international hard money loans. Review their guidelines and requirements on their respective websites before contacting them to begin the pre-qualification and approval process.