Are you a real estate investor looking for the right loan for your needs?
If so, it’s time to consider a hard money loan. Hard money loans are asset-based loans that are usually issued by private companies or investors. These loans are generally shorter in duration, and because they are higher risk, they often have higher interest rates. Hard money loans are beneficial in many different circumstances, but they are especially beneficial for real estate investors. Here are a few of the many benefits of hard money loans for real estate investors in Colorado:
#1. Faster approval
When applying for a mortgage through a bank or another institutional lender, there are countless hoops to jump through, and the paperwork alone can be a nightmare. And once you get through the application process, then there’s the waiting. But applying for a hard money real estate loan is straightforward, simple and, best of all, fast, which is important for investors buying in hot markets, like in Colorado.
#2. Less stringent requirements for approval
Traditional lenders have strict requirements for the borrower’s income and credit, and if you don’t meet this criteria, your loan application is likely to be declined. But since hard money loans are based on the value of the property, as well as the borrower’s down payment, applicants with less-than-perfect credit and income are more likely to be approved.
#3. Stronger offers
All too often, banks and other conventional lenders will pull financing from a buyer during escrow because of an underwriting issue, but hard money lenders very rarely pull funding for the kinds of capricious reasons that other lenders do. This means that, if there are multiple offers on the real estate you’re after, a hard money loan will help to strengthen your offer.
#4. Greater flexibility in repayment
When you work with a bank or another standard financial institution, how and when you repay your loan will be completely up to the lender. But, with a hard money loan, you’ll have a lot more flexibility to find a repayment agreement that works better for your needs.
#5. Quicker funding
Not only are hard money loans approved faster, but they’re also funded faster. With a bank, you’ll be waiting between 30 to 45 days to get your loan funded, and that’s only if nothing goes wrong. But once you’ve been approved for a hard money loan, you’ll get the funding you need within one to two weeks typically. And if you need the money even quicker to save a deal, some hard money lenders can get your loan funded even faster.
For investors, hard money loans are beneficial in many different ways.
These are just a few of the many benefits of hard money loans for real estate investors. If you’re a real estate investor in Colorado looking for the right loan for your needs, contact the professionals at Abbey Mortgage & Investments. Our hard money lenders are here to help you find the right loan for you! Contact one of our experienced lenders today to get started.