Have you been trying to get a loan for more real estate investments? Are you finding the process is difficult, or it takes too long? Don’t miss out on a great real estate deal waiting for traditional lenders to eventually approve or deny a loan. Why deal with banks or even credit unions and all of their red tape when you can get a hard money loan from reputable private money lenders? It only makes sense when you can typically get a hard money loan in as soon as 7 to 8 days.
What Is a Hard Money Loan?
Most people do not understand what a hard money loan is. It is a loan that is short-term and secured by real estate. Typically, a private money lender funds them instead of a conventional lender. The terms tend to be twelve months and can be up to 2 to 5 years depending on what you discuss and agree to with helpful hard money lenders. You are required to make monthly payments of interest, or principal and interest with some form of a balloon payment at the end of a loan term. Payment options may vary from hard money lender to lender. Make sure to discuss all of your payment options so you can choose the one that fits your needs the best. When considering the amount of the loan, it is primarily based on the subject property’s value. You can use real estate that is already owned if you prefer to put it up as collateral, a hard money loan can also be for a property that you want to acquire.
What Is a Hard Money Lender Concerned With?
As with loans from traditional lenders, there are also concerns for hard money lenders in regards to a hard money loan. However, lenders who offer hard money loans are more concerned with the value of the property less than a borrower’s credit. If you have difficulty getting financing using a conventional loan because of a short sale or recent foreclosure, all you need is to be able to show sufficient equity for the property that you want to use as collateral for a hard money loan. Just keep in mind that when a bank tells you ‘no’, a hard money lender can still approve a loan for you with a ‘yes’.
Invest in Real Estate Confidently
Being able to invest in real estate confidently is a satisfying feeling whether you are trying to build a portfolio or wealth. The beauty of using a loan from a private, hard money lender is that you don’t have to part with substantial amounts of money upfront to purchase the property. Keep the flow of cash strong and get a hard money loan and make payments until you can flip the property to pay off the loan with a lucrative profit. That is the whole idea, to be able to invest in real estate and resell it for a profit. Well, at least one of the ideas.
Investors Want Better Lending Options Than Traditional Mortgages Offer
Hard money loans can provide investors with better lending options. For one, they are more convenient than applying for an otherwise time-consuming mortgage. Obtaining a mortgage just for investing purposes can take too long. This puts you at risk when it comes to quickly acquiring investment properties. The alternative offers you the ability to get funding within weeks instead of months. Are you trying to fund a large-scale development project? Are deviations from funding going to end up costing you more money? Don’t waste your time on a conventional loan when hard money loans get you the money you need faster.
Get a Loan with Room to Negotiate
It’s important that the loan you get, has flexible terms. Private lenders are willing to negotiate with you. Talk to them about tailoring repayment schedules to fit your specific needs, or ask about certain fees and whether they can be eliminated or reduced. Private money lenders are eager to work with you.