Why Working With Hard Money Lenders is Better Than Using Your Own Capital
Every real estate investor knows that having enough capital to buy an investment property is crucial to their success. The problem is that not every investor has the financial resources to buy the properties they want outright using their own money. In such situations, investors are typically left with two options; they can either wait until they’ve saved enough money to buy the property or seek other means of funding such as a hard money loan. In this blog, we’ll discuss why using hard money lenders to finance your real estate ventures is often the better option.
Speed and Ease of the Process
Going through a bank to finance your real estate investment can be a long, tedious process. There are often many layers of approval required, which can sometimes take weeks or even months to receive. Hard money lenders, on the other hand, typically streamline the process and make funding available much more quickly than traditional lenders. This is because hard money lenders use asset value as collateral for their loans, so there’s less paperwork to be done. As a result, the loan approval process is quicker and much less stressful.
Lower Upfront Costs
One of the biggest drawbacks of using traditional financing methods is that you need to put down a significant amount of money upfront. This means that you may not be able to invest in as many properties as you would like. Hard money lenders, however, typically require less money down if any at all. This makes it easier for investors to diversify their portfolios.
Flexibility Working With Hard Money Lenders
Perhaps one of the best things about working hard money lenders is their flexibility. While traditional lenders have specific criteria that must be met, hard money lenders are more willing to work with investors to create customized funding options tailored to their specific needs. Additionally, hard money lenders also have more flexible payment schedules, which can make the loan repayment process much more manageable.
More Access to Funding
It’s no secret that banks have become more and more selective about who they lend money to, especially since the financial crisis of 2008. This has made it harder for many real estate investors to secure funding. Working with hard money lenders, on the other hand, offer more access to funding, even for those who may not meet all of the traditional lending criteria. This makes hard money lending a great solution for real estate investors who may have trouble getting approved for financing through other means.
In conclusion, working with hard money lenders can be a great way for real estate investors to get the funding they need without having to use their own capital. Hard money lending is a more flexible, quicker, and less stressful way to finance your investments. Additionally, hard money lenders usually provide more leverage, and the repayment process is often more manageable. If you’re a real estate investor looking for financing solutions, consider working with a hard money lender like us. Contact us today to find out more about our lending options.
If you’re considering working with a hard money lender, look no further than FlipCo Financial. We help investors achieve success through quick and easy funding with hard money loans. Contact our team today and get a free quote on your loan. Our team is actively funding hundreds of projects with new and experienced investors all over the country.