Have you been trying to get into the business of house flipping? It’s not easy to make your big break. You need a lot of money to purchase your first property.
Most people can’t do it without taking out a loan. The problem is, not a lot of banks will give you that kind of cash. It’s a risky investment for them.
That’s why most house flippers turn to the best hard money loan. It will allow you to get funding for projects that you can’t finance through traditional banks.
That’s not the only benefit of looking into them. Check out this guide to learn why you should give one of these loans a try.
Fast Approval Process
If you need emergency funds, you don’t have a lot of time to sit around on your hands. Most people who go with a traditional loan will wait weeks to get an approval. When the bank does approve the loan, you’ll have to wait up to 30 days before you see the money in your account.
In the case of a hard money loan, you’ll get an approval within a day. You’ll have access to your funds within a week.
You Don’t Need a Great Credit Score
When it comes to getting most types of personal loans, the bank is going to pull your credit. If your score is anything less than perfect, you can forget about getting the financing that you need.
Hard money lenders don’t base their decision on your finances. They’re more interested in the project. If your house flipping endeavor seems profitable, there’s a good chance that you’ll get approved.
This being said, they do still look at your credit to some degree. The requirements are much less stringent, however. As long as you have a credit score of at least 640, you should be good to go.
Fund Hard to Finance Projects
It’s hard to find a financial institution that will approve a house flipping project. They see it as a risky investment. This is especially true if the house you want to flip has a bunch of issues.
Hard money lenders at trinitymortgagefund.com recognize that refurbished properties often have a huge profit margin. They’ll be much more likely to give you the cash you need.
There’s No Pre-Payment Penalty to Worry About
The main benefit of getting a loan through a traditional bank is the interest rate. If you have a good credit score, you’ll have plenty of options.
The downside is the pre-payment penalty. If you pay the loan off early, it will take a huge chunk out of your personal finances. Hard money loans have a ridiculous interest rate, but in most cases, you can pay off the loan as early as possible and move on to your next project.
Benefits of Hunting Around for the Best Hard Money Loan
Are you trying to fund a real estate project? Most traditional banks are going to be a little hesitant to give you the money. That’s where the best hard money loan comes in.
If the lender is interested in the scope of your project, they’ll be willing to work with you to get it done. They come with a high-interest rate, but the fast approval process makes it worth it.
For more ways to fund your real estate projects, visit the Finance section of our blog.