Ways to put hard money lending to work for you and your investment business
You may have heard of hard money lending or private real estate financing. You may have questioned the process and, most of all, you may have wondered how hard money lending could benefit you? After all, interest rates are higher with hard money, so what are you paying for?
There’s no question that hard money lending is a very different than traditional lending, but, as with so many things, different in this case is definitely a good thing. Find out the difference that our way of lending makes in the deals available to you, the timeline it offers, and the bottom line for your business.
Hard Money makes better deals
Finding great deals is easy, right? All it takes is a great property, a perfect location, an agreeable seller, great negotiation, an accurate timeline, a meticulous budget. Oh yes, and Money. And that money isn’t just needed for the initial purchase. There are repair and renovation costs that are not covered by traditional mortgage lending. There are draw schedules that need to be met. Most of all, there’s the compressed timeline and quick turnaround of the purchase, construction or renovation, and subsequent sale or lease to consider.
A private real estate lender understands all of the things that matter in real estate investment. His or her expertise is brought to bear in evaluating the property not as it is, but as it will be after renovation or development through your vision, your energy, and your team.
And because private financing offers you the opportunity to cross-collateralize, you may be able to finance 100% of the money you need for the purchase and rehab or new construction project you’re working on. Forget keeping your money tied up in down payments–our money is at work throughout the deal.
Hard Money is fast
Time is money is a truism as old as business and investing. When you’re looking for a good deal, there is nothing more important than the ability to move fast . When you get that phone call with a hot tip or go to an auction to bid on a property, you need the assurance that you will be able to acquire the money you need to close quickly and that is where hard money comes into play.
Because it is not constrained by the regulatory guidelines of traditional financing, private lending can work faster to help you get your deals done before the competition. There’s no waiting for committees or endless back and forth vetting processes. In fact, the loan approval process is designed to get you funded in less time and with less paperwork than you ever thought possible.
When you can pull the trigger in days instead of weeks or months, you have an advantage over your competitors. Not only can you purchase property faster, you can work with the real estate professionals, contractors, designers, and other investors you want, since they know you’re able to get the deals done quickly and reliably. That’s a definite advantage that will carry throughout the entire building or renovation process, as well as the subsequent property sale or lease.
Hard Money makes you money
All investors know that the difference in your profit margin comes down to the number of days, weeks, or months of carrying costs you incur between the acquisition of a property and the sale or lease of that property. When you are constantly having to sweat payment schedules, forego upgrades due to lack of funds, and slash marketing budgets, days in turnaround and days on market can be extended in ways that eat into the bottom line.
Private financing that truly works for investment properties understands this and facilitates not only reliable funding, but funding that takes into consideration the value added by the work your team is doing. Upgrades s become assets that increase return on investment, ensuring that your hard work and financial outlay is optimized.
And if unforeseen problems arise, our private financing offers renewal options to keep you moving forward. What’s more, our service is available no matter what type of property or process you specialize in–residential, commercial, buy and hold, or fix and flip. We can help you make the most of you opportunity with options that work for you.
So what are you waiting for? There’s no time like now to explore all of the ways that Atlanta Hard Money can help you build and grow your real estate investment business. Contact us today to begin the process or explore your options.