Hard Money Loans For Investing

Hard Money Loans For InvestingHard Money Loans For Investing

Hard Money Loans For Investing in Rental properties is a good option. Financing for Investment Property real estate is a completely different game when compared to Owner-Occupied mortgage loans. It moves much faster and is much more flexible.

Investment Property Real Estate Hard Money Loans are usually a Fix & Flip Loan. This is a loan that gives up top 90% of the purchase price and 90-100% of the rehab. The Rehab is given as draws when a portion of the work has been completed.

When purchasing Investment Property real estate, financing is the most significant factor in determining whether the project is worth pursuing. Although there are a variety of Investment Property real estate loans on the market, we are going to look at hard money loans here.

Hard Money Loan Highlights

•    Loan to your LLC vs you

•    Qualify with the property value

•    A loan is a percentage of the purchase price

•    A loan can include Rehab funds

•    Quick close time

Hard money loans for Investment Property real estate are often a matter the best option. Most hard money loans come with upfront costs and a bit higher interest rate.

Hard money loans are considered for non-owner-occupied properties and are issued by private financing groups, not banks or lenders. The loans tend to be only available as the primary loan on the property, which isn’t that rare a situation in Investment Property.

Investment Property Loans

Unlike home loans, hard money loans are all about the potential sales price of a piece of Investment Property. The party considering lending you money is not going to look much at the appraised value of the property. They are going to look at the probable sales price if the Investment. Property real estate must be sold a few months after making the loan, depending on the condition of the property, this figure will typically be between 65 and 75 percent of the appraised valued of the Investment Property.

Put another way, a hard money loan is a short-term loan designed to get you an opportunity. It is undeniably a great loan for an Investment Property. It does nothing other than buying you time and at a hefty cost. If you are in a tight spot and can resolve the problem with a few extra months’ time, a hard money loan may be the answer.

Mortgage Rates

Hard money loans for Investment Property real estate are often a matter the best option. Hard Money loans will usually be about 103% higher rates than a normal Mortgage. Unlike home loans, hard money loans are all about the potential sales price of a piece of Investment Property. They are going to look at the probable sales price if the Investment Property real estate has to be sold a few months after making the loan. Put another way, a hard money loan is a short-term loan designed to get you an opportunity.

Apply For A Hard Money Loan

Once you have found an Investment property to buy, get pre-approved. The process is usually easy and quick. The loan is not based on your pay stubs, etc. It will, however, require about 660-credit score. With Hard Money Loans For Investing you will get a lower rate if you are an experienced Investor. If you have done 4-5 Investment property deals in the last few years, you are good.  

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