Hard money loans are short-term bridge loans in which investors can finance a short-term project without waiting to receive funds. It is ideal for house flippers or real estate investors looking to maximize on developing property. Find out how hard money loans can further help you with this guide on real estate investing: three advantages of hard money loans.
It Helps Build Credit
Hard money loans, also known as short-term bridge loans, are a great way to build financial credit. They bridge the gap between investment purchases and long-term financing. Traditionally, money lenders review credit before allocating a centralized loan that can affect those with low credit scores, an unconventional income source, or high debt. Hard money loans bypass these traditional hurdles because they use a collateral asset as repayment. Hard money loans allow someone to rebuild their credit while paying off a short-term loan.
Since hard money loans are short-term and usually last one to a few years, they are easier to pay off. It grants a secure loan in a short amount of time, making the process smoother for the lender and borrower. Hard money loans cut out private lenders from the investment process. They are also one of the most popular loan options for house flippers or real estate investors because of the quick funding for large-scale projects. Depending on the lender, the real estate property or personal asset can become collateral.
The last advantage of hard money loans for real estate investing is that they are flexible. There is greater room for negotiation between lender and borrower because they can tailor payment schedule, underwriting fee, or origination fee. Lenders also lend 100 percent of the purchase price without requiring a down payment, meaning borrowers are only responsible for the origination fee and monthly interest. Hard money loans are a great option for first-time real estate investors, too, as they require little personal investment. Borrowers can establish a secure line of credit from securing hard money loans.
Hard Money Partner proudly offers fast, reliable hard money loans for real estate financing in the Oklahoma City and Tulsa regions. As hard money lenders in Oklahoma City, we understand the value of fast, reliable financial options tailored for you. Call now to get started.