When people want to grow wealth in the real estate industry, hard money loans can be a great option for those who want to quickly build their real estate portfolios with a fraction of the cash. They are excellent finance options for fix and flip projects or any project with a short turnaround. One of the reasons these types of loans are so appealing to investors is that the qualification requirements are not as stringent when it comes to credit scores or employment history. Hard money lenders typically have their own requirements that involve a significant down payment or property equity for collateral.The most important thing to remember about hard money loans is that they are short-term loans, so investors should have an exit strategy in mind (how they will pay off the loan) before even securing funds from a lender. Today we discuss different types of strategies that buyers should consider, including whether or not you can (or should) refinance a hard money loan.
Benefits of Hard Money Loans
In a competitive real estate market, cash is king. What many investors have learned throughout the years, though, is that cash is not always necessary.
That’s where hard money loans come in.
One of the many benefits of hard money loans is that they allow investors who do not have “cash in hand” to fund a project and compete with cash buyers. Another advantage of these types of loans is that they can be approved and financed relatively quickly compared to traditional loans and lenders. When a borrower applies, they can potentially be