Diversifying your investment portfolio does not need to be a full-time job.
You can take the mantle of a passive investor and still make significant profits while utilizing the resources available to you, such as hard money lending. If you’re considering real estate as your next investment and want to fix & flip or rehabilitate a property while remaining passive, hard money loans can be a valuable option.
Hard money loans are safe, short-term, and secured, ensuring every type of investor gets the results they need.
Get in and Get Out
Hard money loans have built their popularity on being short-term commitments. You will often see contracts for only 6-18 months, which is just enough time to work on a fix & flip or rehabilitation real estate project.
The availability of a short-term financial commitment provides liquidity along with the ability for investors to invest their capital a handful of times, getting faster and more returns. You can get in and get out of your real estate investment with a hard money loan.
Investments Are Secured By Asset Value
Hard money loans are considered secured forms of financial assistance in many ways, but one of those ways is how they are acquired in the first place.
Hard money loans are asset-backed. They are secured by the property value itself, acting as collateral. So, not only as a borrower are you not solely questioned on your financials in order to qualify for a hard money loan, but the property itself can also help you secure a higher loan, depending on its value and potential.
The Private Lender Advantage
Another security advantage for hard money loans is the source of cash. Private lenders fund hard money loans. This means that your loan is funded by other investors who have similar goals and motivations as your own and, just like you, want to see that money grow.
Utilizing private lenders also changes the qualifications necessary in order to obtain a hard money loan. The process of qualifying and obtaining a hard money loan is significantly simpler and quicker than a traditional loan, allowing you to get in and out more efficiently while remaining secure in your investment.
The High Return Possibility
Hard money loans do come with the possibility of higher interest rates than conventional loans. However, this is done because of the fast-paced nature and the higher risk of the loan. Fortunately, to balance this out, hard money loans can help lead to significant investment returns over a short period of time.
Get That Passive Income Stream
For passive real estate investors, the choice of hard money loans for real estate investment opportunities, such as a fix & flip or rehabilitation project, can lead to countless benefits and a passive income stream.
You can get funding faster, pay it back quicker, and move on to the next project without anything holding you back. Hard money loans allow you to get the work done and move on, incurring a passive income as you go along with your investment ventures.
Hard money loans can be a great choice for your real estate investment. If you have further questions or wish to apply, contact the team at KC Investor Funding.