If you’re a real estate investor who wants to take equity from one property and reinvest it by buying another property, a cash-out refinance through a hard money loan may be exactly what you need.
What is a Cash-Out Refinance With Hard Money?
Cash-out refinancing helps you get the equity out of a house that has appreciated in value. Let’s say you purchased a rental property for $100,000 a decade ago. Today, that property has appreciated in value so that it’s worth $125,000. You’d like to get that extra $25,000 to invest in another rental property, but you don’t want to sell the original home – you’re making money from renting it to tenants.
You can use cash-out refinancing to access the $25,000, which you can use to purchase another investment property or for any other purpose.
Why Do People Use Cash-Out Equity Lending with Hard Money?
Hard money loans are typically straightforward, and because you can get the money quickly (in most cases, Atlanta hard money lenders are able to provide you with funds in just a fraction of the time it takes a bank or other lender to come through), hard money loans are often the smartest choice for investors who see a great deal on a new property and need to act quickly.
While your credit does matter to a certain extent when you take out a hard money loan, the value of the property carries quite a bit of weight, as well. Investors who don’t have the credit to work through traditional lenders often find that hard money is the best solution.
Why Choose Paces Funding for Cash-Out Equity Lending?
Paces Funding can lend you up to 50 percent of the property’s value in a cash-out equity loan. We’re fast, efficient, and able to lend you the capital you need.
Call us at 404-814-1644 or get in touch with us online. We may be able to help you get the money you need.