Conventional loans are not always an ideal option for a real estate investor. The process of getting the funding when you need it (AKA before someone else snags the property with their offer) can be frustrating, especially as supply remains low and demand remains high. Opportunities are often time-sensitive and highly competitive.
That is where hard money loans can be a great asset to real estate investors.
Hard money loans are short-term loans issued from companies that do not classify as traditional lenders, such as banks. Hard money lenders Florida are the companies that use their own capital to fund commercial real estate. These lenders often interact with their borrowers more than traditional lenders ever do.
Hard money loans are quite similar to asset-based financing. Property purchases can be made into collateral to reduce the risks involved with loans for both the borrower and the lender. Most can be repaid within two years. They are a great option for investing in real estate or working on a fix and flip property.
Specific qualifications may vary from lender to lender, but some places may offer pre-approval within the day. Funding can be secured faster than with a bank. That is great news for investors.
Many lenders do not need to offer approval based on personal qualifications such as credit score, so hard money loans are also a great option for new investors.
Check out Monroe Funding Corp online to learn more about hard money loans.