Top 3 Reasons Fix & Flip Investors Use Hard Money
For real estate investors, fixing & flipping property can be a lucrative way of making a living, but it usually requires some funding up front. Hard money loans are a very popular option among fix & flip investors because they have some distinct advantages over standard bank loans.
In most cases, standard loans require a lengthy background check and the possibility of being rejected for any number of reasons is much greater. The hassle of securing a loan can add unnecessary stress to an already chancy proposition. No one likes the idea of holding their breath while the bank goes over your financial history and credit score with a fine-tooth comb.
When you need money in a hurry in order to nail down the purchase of a potential fix & flip property, you can’t afford to be waiting on loan approval. You also don’t want to leave things to chance at the hands of a bank. With a hard money lender, you’ll have more flexibility to tailor your loan to your needs and you’ll even be able to get advice on the best way to move forward financially.
These are all distinct advantages of hard money loans, but here are the 3 top reasons that most fix & flip investors opt to use hard money:
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Faster Turnaround–
When it comes to fix & flip real estate transactions, speed is crucial. This is particularly true if multiple bids are involved for the same property, but it applies to any fix & flip situation. While banks can take as much as 30 days or more to complete a loan, in many cases hard money lenders can have the money to you in as few as 3 or 4 days. That’s because they base the loan on assets rather than credit/background checks and because they pay out of their own funds, so there is no extra wait time. When you need to get your bid in and get it accepted as quickly as possible, not to mention negotiating quicker closing timelines, there is just no better way to go.
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Reliable Fix-n-Flip Funding –
Fix & flip propertiescan be a great investment, often allowing for significant return as you can pick up the property cheaply and drastically improve its resale value. Unfortunately, buying a “fixer upper” is often considered undesirable by most banks. They may deem these properties “uninhabitable” and that means it’s too big a risk to approve a loan for this type of purchase. Again, since they use their own funds, hard money lenders aren’t as put off by this approach. They are much more likely to recognize the potential return on investment, which can be quite high, and will be more comfortable providing loans for fix & flip properties.
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Tailored Loans –
There are a lot of unique circumstances involved in fix & flip investing and that means you may need a loan that is tailored to fit your specific needs. Banks are notoriously inflexible when it comes to loan terms but that’s not the case with hard money lenders. Working with a hard money lender, you may be able to make adjustments to Loan-to-value (LTV), interest rate, points and term lengths depending on your needs. This ability to customize a loan can be a huge asset when you need to make a fix & flip deal work for you.
The Hard Money Loans Real Estate Investors Can Depend On
When you need financing to move on a fix & flip property, you usually don’t have time to waste dealing with red tape. That’s when hard money loans can make all the difference. At Lantzman Lending we work with real estate investors to provide the money they need for a quick turnaround. We have over 50 years of experience and have provided direct hard money loans to investors in California, Texas and Nevada.
We won’t take extra time going through your financial history or credit score and we are ready to move quickly since we use our own money. Give us a call and fill out an application and we guarantee you’ll have a quote within 24 hours. In most cases we’ll have the loan secured and the money to you in as few as 4-5 days. In some circumstances, we may even be able to do get it done in 3 days.
Since we understand the unique parameters of most fix & flip deals, we’re ready to work with you to expedite matters and to tailor your loan to fit your specific needs. The end goal is always to ensure that you see a good return on your investment and we’ll do whatever it takes to help make that happen.
Real estate investing is always a risky proposition but that risk shouldn’t be compounded by a complicated loan process. At Lantzman Lending we understand the chance you’re taking and we’ll do everything we can to make it easier on you. No dealing with a middleman or jumping through a lot of hoops, we’ll take the hassle out of securing a loan so you can focus on purchasing and renovating that property.
The next time you need funding for a fix & flip investment, come to Lantzman Lending to secure a hard money loan. You’ll be able to breathe easier knowing you’ve got the funding you need. Take the risk out of real estate investing with hard money loans you can depend on.
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