Do you need a hard money loan? Investing in residential or commercial properties generally requires you to get a mortgage loan to own the property. But wait. Owning the property as a business offers more advantages. Also, many possible financing options are available to you from third-party providers like private money lenders. That is what we call hard money loans.
What is a Hard Money Loan?
Private Money Loans are loans that are referred to as Hard Money Loans. These loans are backed by collateral such as real estate and other personal property. Though a good credit score is desirable even not-so-good credit is not a deal breaker.
Closings on real property can be much faster when using other people’s money because the loans are private. This kind of loan often takes only a few weeks as long as the borrower meets the financing standards.
How to get a Hard Money Loan
Hard money loans are often the go-to option for many small and large real estate investing companies. They also require less paperwork and fewer hoops to jump through. When obtaining a hard money loan, consider the down payment to leverage or offset the interest or a bad credit score. You can start by contacting a Private Money Lending Broker for the fastest approach.
Most often, lenders will require a credit check. This is just a quick process that they do to make sure that you have the means to repay them in the future. Don’t shy away from inquiring about a private loan with a low credit score. The credit score is not the final determining factor in obtaining hard money loans. Quite the contrary.
Where to Use a Hard Money Loan?
Don’t think of a hard money loan only as an emergency bridge loan. A loan is a loan. A smart business owner knows how to leverage an opportunity and the entity’s expansion. Consider the companies fixes, and flips, rentals properties to buy and hold, etc. This blog post briefly overviews where you can use hard money loans
Fix and Flip House
So, a hard money loan can be used to buy, fix and flip properties, and sell for a profit. For anyone doing fixer-uppers, this type of loan should be your first consideration. Money can be easier to obtain when and no penalty when paying off the loan early.
Buying investment properties
When you are buying an investment property, including real estate, rental properties, and other assets use other people’s money. But as mentioned, do not let a low credit score scare you away from getting the money you need. There is always a way and people who want to help you build your empire. What is your why?
Getting a commercial real estate
With a hard money loan, you can use the loan to escape the bidding war that may happen in the bidding process. This is particular to businessmen who want to get the best real estate property to construct their business location.
Final thoughts
Individuals have used these types of loans for decades. Using private lenders can provide you with capital to build your credit, business, and portfolio is a wise decision. Consider your private lender a silent partner who only wants to help you succeed. When you win they win no matter what your financial history looks like.