3 Advantages Of Using Hard Money On Your Next Investment
Hard money loans are a popular option for investors who need to secure funding for a short-term real estate purchase. In cases where a property is purchased with the specific goal of renovating and reselling, timing is everything. It’s important to be able to move quickly on these properties, especially if there are other potential buyers waiting in the wings.
Since most traditional loans can require a lengthy background check process and may be turned down for any number of reasons, hard money loans are usually a better option. These loans use property or other assets as collateral so there is no need for a detailed check of your financial history nor do you have to worry about basing your ability to secure a loan on your credit score. That means there is less of a chance that your loan application will be rejected.
At the same time, since direct hard money lenders finance loans with their own money, the turnaround time can be considerably quicker than it would be for a traditional loan. This can be a huge benefit for individuals who are in need of immediate financing, either to secure a real estate purchase or dig out from under another loan.
Aside from these general benefits, there are other specific advantages of using hard money to fund your next investment:
Fast Closings/Quick Approvals–
As mentioned above, one of the biggest advantages of a hard money loan is quick turnaround. Banks can spend 30 days or more completing a loan package which they base heavily on your credit score. Since your credit score can take a hit from even one isolated incident, you can find your ability to secure a loan greatly hampered by the smallest of financial missteps. Hard money lenders use their own money and base the loan on assets, so they can have it turned around in just a few days. This can help you secure that investment much quicker and easier.
Low Credit Score? No Problem!–
Banks tend to have a low tolerance for low credit scores. If your credit score is less than ideal, that could become a roadblock to securing the loan you need. Since hard money lenders don’t base their financing on credit scores, this isn’t an issue for them. Credit scores of 620 or higher are regularly accepted by hard money lenders and some lenders may even be willing to work with borrowers who have lower scores. The flexibility in terms of approval is much greater with hard money loans, which can make a huge difference.
Fix-n-Flip Funding –
Fix-n-flip properties can be a particularly good investment as the profit margin is generally better when you buy low and sell high. However, these properties often require a potential buyer to move quickly in order to secure the sale, so being tied down waiting for loan approval can cause a problem. Also, many banks tend to shy away from providing loans on properties that they deem “uninhabitable”, making it difficult to secure funding for a fix-n-flip through a standard loan. On the other hand, hard money lenders are more likely to recognize the potential high return on this kind of investment and in turn are more likely to approve a loan for a fix-n-flip property.
Hard Money When You Need It Most
No matter what your specific financial situation is, it’s crucial that you are able to secure the money you need when you need it most. That’s where a direct hard money lender like Lantzman Lending can be a real asset.
We provide direct hard money loans in California, Texas and Nevada and have over 50 years of experience to draw from. We’re ready to step up and work with you to craft a loan that meets your individual needs and can help you make the most out of your investment.
We use our own money for financing and won’t get bogged down in detailed checks of your financial history or credit score to determine approval. That means we’re able to provide a quote within 24 hours of receiving your application and in most cases we can provide the money you need in as few as 4-5 days. Just fill out the application and you’re on your way toward making good on that investment.
Whether you’re looking to purchase a fix-n-flip property, want to purchase a commercial building or are focused on a construction project, we can help you move quickly. That can ultimately mean seeing a good return on that investment and dramatically increasing your income.
Purchasing property can involve a lot of risk and when it comes to taking that kind of leap you need to have financial backing you can count on. That often means relying on a hard money lender to provide you with the funds you need without the hassle of a middleman or a ton of red tape. That kind of freedom can be invaluable and that’s exactly what a hard money loan can do for you.
Before you move on your next investment, consider all of your financing options, especially securing a hard money loan. It’s too important a decision to take lightly. Lantzman Lending can help you with a direct hard money loan that will make those financial dreams a reality.
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