Hard money loans are asset-based financing, meaning that the property bought with the loan is used as collateral in exchange for the funds. This option appeals to many who want to flip or restore a rundown property and wants to avoid dealing with a bank. Hard money investments can also provide a slew of benefits to those who use them, as they are stable and great for those who want to diversify their portfolio with real estate while keeping their retirement safe.
The Short Answer, Yes
Hard money loans can be an extremely steady and secure investment. Compared to other options, hard money loans are provided by a private company that deals specifically with this type of lending. This gives you the opportunity to partner with people who know the industry and understand the tasks ahead of you instead of dealing with a bank that won’t be as personable.
Hard money investments are usually used to flip a house, invest in commercial property, or renovate a home. With the property used as collateral and a hard money loan having a quick(er) turnaround time, you are likely to sell the house before the loan term ends, allowing you to not deal with significant interest.
The Pros of Hard Money Investments
If the safety of your retirement is a concern regarding new investments, hard money loans offer plenty of benefits that make it a safe and dependable option.
- The Collateral – The amount of money you get from the loan is dictated by how much the property will be worth once the repairs are completed. This makes the property itself collateral for a hard money loan.
- Flexible Terms – Since a private institution provides the loan, there is more leeway for negotiation regarding terms. Deals are determined on a case-by-case basis, allowing for the possibility of revised payment schedules or the loan’s duration. Companies such as KC Investor Funding offer personalized rates, fees, and terms, depending on the type of real estate investment financing you need and loan programs suited for any real estate funding need, situation, or project.
- Fast Turnaround – Compared to traditional loans, hard money loans can be closed quicker. The lender is more concerned about the property rather than your employment or financial situation. This can get you a much faster approval.
Here’s How to Do It
Everyone hopes to have a retirement where they can relax and use their investments to live a comfortable and happy life. Through hard money investments, you can do just that. Real estate allows for great returns, and hard money loans can ensure you do it safely and quickly.
If you’re interested in learning about hard money loans and investing in property flipping and renovation, a private loan company can guide you in the right direction to maximize your profits. Companies, such as KC Investor Funding, are there to help assess the property and provide you with a loan to flip it and gain a profit. Companies like us can provide alternative funding solutions to grow your real estate investment projects while also helping investors reap the benefits of the real estate market.
If you have questions or are looking to start flipping and restoring properties but need a loan to begin, contact the team at KC Investor Funding.