Real estate investors in the know like to use hard money lending to fund projects and increase their investment portfolio. Even if they have good credit and could use a traditional lender, they may not have time to wait on some lending approvals.
Because conventional lending is an involved and lengthy process, savvy real estate investors with good and not-so-perfect credit find applying for hard money loans beneficial. Moreover, this type of funding covers three key investment areas.
Investors, who fix and flip houses, use the funding for new construction, or invest in rentals, ask the same question, “Where are the hard money lenders near me?” If you too are an investor, you can find out how to apply for these popular lending packages by visiting Asset Based Lending online.
When you fix and flip and house, you often are seeking a quick source of funding. While it does take about 10 business days to process a hard money loan, you do receive the proceeds in about 48 hours. You don’t have this type of latitude with a traditional bank.
Are you currently asking the question, “Where are the hard money lenders near me?” If so, you’re on the right track. A local hard money lender’s underwriting criteria is much more adaptable to your fix-and-flip needs.
Plus, you can take out loans at interest rates beginning at 8% with no more than 0 to 2% points. If you’re a repeat buyer, which most fix-and-flippers are, you can receive preferred pricing on your loans. Most of these types of loans cover amounts from around $75,000 to $2.5 million.
Using the services of an asset-based hard money lender is an excellent way to construct and acquire single-family residences and multi-use properties as an investor. You enjoy lower interest rates and flexibility in underwriting as well. You can also use new construction loans to gut a property and totally refresh its look.
When you use a hard money lender for new construction financing, you only spend the money on what you need during the project. The lender allocates money during project milestones, so you can both stay on track of the progress. Doing so creates a win-win situation for both you and the lender.
Hard money construction loans usually range from $100,000 to $5 million and terms typically cover one year. Rates begin at about 5% for borrowers with good to excellent credit.
Because of the flexibility of hard money lending, you can invest in rental real estate with only a light amount of paperwork and no income verification. Rental loans may cover properties with one to 9 units. You can finance the loan for as low as 4.75% over a 30-year period.
When taking out this type of funding, you can apply for a portfolio loan. The lender originates these mortgages and keeps them on their books, which allows them to establish the standards for financing. These standards normally offer a borrower more opportunities for building their portfolio. You should have at least a credit score of 620 before you apply.
Are you ready to expand your real estate portfolio? If so, apply to a hard money lender today. Find a program that will give you both lending flexibility and a way to grow your portfolio conveniently and easily.
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