What is a hard-money Loan?
A hard-money loan is one which private lenders provide short-term loans to individuals purchasing residential or commercial real estate typically with the intent to fix and flip or fix and hold the property. Investors use hard-money lenders to acquire investment properties relatively quickly. Hard-money lenders are considered private lenders, and do not use conventional standards to extend credit to borrowers. A borrower uses a hard-money loan as a temporary, short-term loan solution until he can either flip the property for a quick gain or acquire more conventional
Financing for the property.
Why are Hard money loans great for REI?
The benefit of hard-money loans to REI are many but the following jump out the most;
Quick Application, Approval, and Funding Process.
The process to get a hard money loan from Investorprivatemoney.com is easy! We only require a simple loan application and review process that could be approved within days. Most banks and lenders on the other hand have a long and detailed application and approval process. Sometimes you have to wait several weeks for an approval or even a response.
Investors need to act quickly in order to get good deals. As a result, REI’s rely on the speed of their funding to get these deals. Banks can take up to six weeks while we can fund your deal in days.
Bring Some Weight…
Offers made with hard money loans bring some weight rather than letters of intent in the real estate industry. Investors know that banks are demanding and could pull their funding at the last minute. Bring an offer backed by Investorprivatemoney.com and they’ll know that you’re a serious buyer who’s ready to make a purchase.
Get More Deals
Some real estate investors stick all their money into one project. But savvy REI’s use hard money loans to purchase properties instead of cash. This way they’ll have more money to purchase more properties or finish other projects. And we don’t require any monthly payments, closing costs, or down payments! They’re all rolled into the loan. Keeping even more money in your pocket!
Free-up Equity in Currently Owned Properties
You never know when a great real estate investment opportunity is going to come up. When they do, investors often need to act quickly to secure the deal. Coming up with the funds in a short period of time when all of your money is tied up can be difficult. Luckily, at Investorprivatemoney.com we also offer short-term Bridge or Refi loans for those who have enough equity in their property.