Real estate can be a great avenue for building a diversified portfolio. Hard money loans allow you to obtain funding for an investment properly fairly quickly and means that you do not need to use a significant amount of cash upfront. This short-term lending option means you can finance your investment based on the value of the property itself and it is particularly ideal for developers who plan to renovate or develop a property. Here are the pros to using hard money loans for real estate investment:
- You can obtain a loan quickly. Hard money loans offer more convenience than a mortgage, which can take months to close. A hard money loan can be obtained in weeks which allows you to move more quickly on pursuing and developing new properties.
- You can benefit from flexible terms. Private lenders will have more flexibility when offering hard money loans and you will be able to have some negotiation on the terms of the loan. For example, you may be able to make the repayment schedule tailored to your needs. You will also find fewer contingencies than when using financing provided by a bank.
- You can offer different collateral. Typically, the property itself is used as collateral for hard money loans. Along with flexible terms, a lender can be willing to use different assets to secure the loan, such as a residential property you own.
Make your investment work for you by considering hard money loans. This flexible and fast option will allow you to work more effectively on your own timelines while benefiting from your real estate investments.
