Private Money Lending 102 - Why Choose Hard Money Lending?
Updated: Jan 7, 2019
Welcome to week two of our informational series on Private Money Lending. We hope you enjoyed last week's post, Private Money Lending 101. Now that you've gained a better sense for what private money lending involves, and what the term comes from, we'd like to delve into why people use it.
Since private money loans are structured to be around 6-12 months with monthly payments of only interest, or interest and some principal, and a balloon payment at the end of the term, they are well suited to home rehabilitation projects and property flips. They're geared towards getting investors the capital they need to invest, and to do what they do best — bring a home's potential to life.
In addition to using the funds from a private money loan to acquire properties, investors can create margin by using funds for repairs during the renovation process. By working these expenses into the initial private money loan, the process is expedited, and investors are able to realize their margins quickly, and efficiently.
Another strong upside to choosing private money loans, is the ability to invest in multiple projects at once. Since each private money loan stands on the value of the property, and the after repair value, our investors are able to look for multiple deals at the same time. In short, finding additional real estate with excellent potential value just after you've begun a renovation project no longer means a missed opportunity. With the right hard money loan, and proper resources, both projects can easily be within your reach.
Of course, speed is essential with real estate investing, so when you do find those additional projects, and need to move quickly, our private money loans can usually expect pre-approval within one or two days, and we typically close and fund the loan within 10-14 days. Meaning you have less wait time, less wondering, and more opportunity to realize your investment goals.
To learn more about how to obtain a private money loan for your future real estate endeavor, email us at email@example.com, or call (262) 222-6400 to schedule a consultation. Or, if you're interested in the private money investment process, please give us a call.
Thanks for reading - we look forward to hearing your thoughts, comments, and questions!