If you are a real estate investor considering taking out a hard money loan to purchase a property, you need to know that it may be a great choice for you. This guide explains the pros to hard money loans in clear, easy to understand terms so you can make the right decision.
What Are the Pros to Hard Money Loans?
Many investors feel that hard money loans are the perfect solution. That’s because they offer:
- Flexible terms
- Built-in collateral
Here’s a closer look at each.
Hard Money Pro #1: Flexible Terms
Hard money loans have very flexible terms. You can negotiate with a hard money lender to meet your needs, including tailoring your repayment schedule to one that’s very manageable and dealing with you are down payment. The best way to find out what kind of terms a hard money lender will offer you is to talk to one; you can call our office anytime to speak with an experienced loan officer who can give you the answers you need.
Hard Money Pro #2: Convenience
Hard money loans are very convenient, especially when compared to conventional mortgages. The application process is simple, and you can get funding very quickly (sometimes in just a matter of days). that means when you find a hot deal on the market, you can pounce on it without having to wait for a lender to approve you.
Hard Money Pro #3: Built-in Collateral
Usually, the property you’re borrowing to purchase serves as the collateral on a hard money loan. And in some cases, you can even use other types of collateral. That’s between you and your hard money lender. If you’re not sure how collateral works on these secured loans, you should talk to someone in our office. We can give you the guidance you need.
Related: 3 tips for buying a distressed property
Do You Need a Hard Money Loan?
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