Why Pursue Hard Money Loans?
Let’s say you’re in the business of “fix and flips” and you need the money for a time-sensitive opportunity. Would you really want to go through a national bank that takes months to process your loan? We’re guessing not. With the state’s housing market as hot as it is, that fixer-upper could put a whole lot of green in your pocket. Just know that a standard mortgage probably isn’t the best idea in this situation. This is where hard money loans come into play.
What developers and house flippers like about hard money financing is that it can be obtained fairly quickly and its terms can be flexible. So why do some people steer clear from the consideration of hard money real estate loans? The reality is that these loans cost quite a bit more than the average bank loan. Hear us out, though. Those who pursue hard money loans can get right with the development, turnaround, and construction work without risking the financing from a traditional lending source. Plus, the application process takes about a day or two, whereas bank loans may draw on for months on occasion.
Are Hard Money Loans Right For My Situation?
Please note that these loans aren’t the best option for every deal. Maybe you have good credit and solid income history. On top of that, there are no problems with foreclosure or the home sale in general. If this is the case, conventional financing from a bank would be the more sensible option. Should you need the loan for a short amount of time, we recommend giving some thought to hard money loans.
How to Choose a Hard Money Lender
Now that you know more about hard money loans, let’s dive into finding a lender. Sure, there are seemingly countless hard money lenders in Colorado. Don’t make the mistake of thinking that all of them are the same. Once you start doing research, you will quickly realize there are good and bad names in the business. Unfortunately, it can be overwhelming to find reliable commercial hard money lenders.
At Abbey Mortgage and Investments, we have decades of experience in the real estate world. Robert Kearney, one of our private hard money lenders, can get you on the right track. What sets Robert apart from other lenders is his experience in construction management, development, property zoning, property investment, and much more. Rest assured that Robert will take a dedicated approach when handling your loan.
See what our hard money lender can do for you. Feel free to reach out to Abbey Mortgage with any questions regarding hard money loans, short-term loans, and commercial loans.
You can also check some of our other articles out.