Finding a trustworthy and reliable financing solution when purchasing investment property can be difficult. Most conventional lenders have strict criteria that you have to meet, and underwriters take their time approving the loan. Even if the loan is approved, it’s often for less than originally requested. Also, if you don’t have a near-perfect credit score, the chance of getting financing from a bank is slim to none.
As you further embark on your real estate investment journey, it’s smart to align yourself with a hard money lender. Hard money loans help you acquire investment property that you plan on selling or renting out, and they don’t have nearly as many hoops to jump through as the banks.
Let’s look at four reasons why you should rely on hard money lenders for real estate loans.
1. You’re more likely to be approved.
Hard money lenders have less stringent terms compared to traditional financing institutions. With their own set of rules and regulations, you’re more likely to be approved for what you need, even if you don’t have great credit. Better yet, hard money lenders leave room for negotiation. They are open to speaking with you and hearing about the terms that best fit your needs.
2. You get the money you need quickly.
When investing in real estate, time isn’t on your side. You must act quickly to get the properties you want, which means you need a trusted lender lined up. Hard money lenders work quickly. They require far less paperwork, and applications are approved right away. With streamlined paperwork and immediate approvals, you can take advantage of every opportunity.
3. You may ask for real estate investing advice.
Another perk to relying on hard money lenders is their professional real estate investing advice. Though most are not personally real estate investors, they understand the industry and are familiar with state laws. If you have several opportunities lined up, a hard money lender can look at them and determine which is best for you.
4. You can do more deals.
To be a competitive real estate investor, you must close a lot of deals. This is made possible with hard money real estate loans. Because they give you the capital you need to move forward, you can earn more money and close another deal. And another. Using your money from the previous deals, as well as the money you get from your lender, you can move onto more and bigger deals.
Whether you’re a beginner or seasoned real estate investor and you think a hard money loan may be right for you, call First Equity Funding to learn about your options. We provide fast approvals that allow our clients to be most competitive when buying properties.