Hard Money Loans
In the real estate industry, opportunities do not always come and when they do, you definitely have to take them no matter what. This is why most real estate investors recur to hard money loans to be able to build their careers or go for bigger opportunities.
Using traditional loans for real estate investments can be problematic and not the best option due to how long it takes to have one approved. Since most of the credits are provided by banks or similar institutions like insurances and pension funds, you can imagine the requirements are not only many but also very specific and limits anyone interested in acquiring one.
Besides, most of these lenders give you a reply within 60 to 90 days, which is enough time to lose the opportunity you had in your hands. When you consider this, it is only logical that most real estate investors go for the option of using their own capital or revenue to invest in the new property. Using the money you have obtained from previous investments and use it to make even more is what the business is particularly about.
But you can’t always rely on such a method when the cost of the property is much more than what you can personally afford or even if you can, you can’t just go for it without hesitation. This is when loans play a crucial role, but when they are not approved quickly and you certainly need them several times during your real estate career, recurring to hard money loans is the best and only option. These loans have a different approach than traditional ones: instead of proving you are able to repay it, lenders will provide the money based on securing the loan with collateral options, such as the property you acquired with it.
They are riskier and you shouldn’t always go for them but rather as the last resort to go for the real estate investment you have set your mind on. The team at Commercial Real Estate Loan Pros of West Palm Beach can offer you the hard money loans you need without many requirements nor weeks for considerations. We honor the main benefit of these credits: they are quick and available for you when you need them without further conditions or many steps.
When to apply for hard money loans
This is the first thing you need to keep in mind: they aren’t for everyone nor every situation. Private money loans are the best option if you are going for regular investment in new properties since you have more time to pay them and the interest rates are lower. Also, you don’t have collateral risks in case you have problems repaying it. Instead, you can be given more time and flexibility.
Based on this, why would anyone apply for hard money loans? Because they need the money as soon as possible and usually, it’s a large amount that is hard to obtain from traditional ones. As we mentioned before, this type of credit relies on speed and availability more than anything else.
If you are looking for funds that can be obtained in a matter of days or even hours, you can definitely go for this option but only if you are aware of the risks and possible consequences. Real estate investors who know can have a hard time repaying the credit shouldn’t apply for it even if that means losing an opportunity. The collateral to secure the loan will always be the property you acquired with it, which is why you should consider the pros and cons and how possible is for you to meet the conditions of the loan.
However, the conditions also depend on the lender itself. Some private lenders give from 2-3 years to repay the credit while others go up to 5 years. One of the main features is that they are generally short-term credits, which can make it a bit harder for some borrowers.
Where does this leave you? Basically, you should go for this loan option if:
- You need money quickly and can’t get it with traditional funding.
- You need more chances to obtain the loan based on your situation and needs, not on pre-established requirements.
- You are willing to offer the property as collateral.
- You are looking for a short-term loan, which is perfect for most real estate investors that aren’t purchasing a property to live there but rather increase its value and resale it.
Why we are the best lenders you can choose
Accessing a hard money loan seems simple, but it can be more complicated than what most real estate investors and companies think. In order to apply for one, you usually need to build a relationship with the borrower. Lending large amounts of money and on such short notice without requiring bank history, credits, or a long process, takes more than just an application.
However, it is easier to have your loan approved when our team at Commercial Real Estate Loan Pros of West Palm Beach is the one giving it to you. We are interested in building this relationship and help you to have the loan you need for your investment. Therefore, we are very serious when we mention how flexible this type of credit is, but we add our own flexibility to the formula.
Since these credits are based on collateral to secure them, we will definitely rely on this and nothing more. This means the approval process will be much quicker than usual and you will have the chance to finally invest in that property you set your eyes on. However, what we are more confident about is definitely the time you have to repay the debt.
We are aware that this credit is quite expensive when you notice what you can lose if you are unable to pay it back, but we wanted to give more opportunities for it where we both, the lender and borrower, can obtain benefits from it. This is why we have made sure to offer 5 years to almost every real estate investor that reaches out to us for the credit. In certain cases, we will give you fewer years, but we will do our best to keep it up to 5 so you have more time to repay it and concern less about losing the property you invested the money in.
Finally, the amount you can request is higher than most companies in West Palm Beach, which brings more opportunities for you to invest in bigger properties and build up a sustainable real estate career.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.
We service all counties and cities throughout South Florida. However, if you need any of these services in other cities throughout the state of Florida, please contact us. See what services we offer below: