Benefits of Getting Multi Family Hard Money Loans, 

Hard money loans are a great resource to finance a multifamily purchase. But, since commercial real estate investing isn’t as prevalently covered and explained by news media, they are not widely understood. Hard money loans remain somewhat a mystery to many people. And, even those who have experience in the traditional, residential real estate market, might not know much about hard money loans.

Benefits of Getting Multi Family Hard Money Loans, Explained

So, exactly what are hard money loans? And what advantages do hard money loans provide those seeking to finance for a multi-family property? Well, hard money loans differ from traditional mortgage debt instruments in various ways.

You’re probably familiar with how traditional, conforming, fixed-rate mortgages work. You apply, get a pre-qualification, a cursory look at your finances. Then you receive a pre-approval, a more in-depth look, to provide you with a loan amount. Finally, you buy a home and close on the transaction. All of this can take 45 days to 60 days to 90 days to complete.

Hard money loans are very different. You don’t apply to a bank as just a number on a file. Plus, your credit score isn’t typically a factor. And, you must wait weeks for final approval. Even then, you’re not guaranteed to fund.

By contrast, hard money loans provide fast funding, require no credit inquiry, have a flexible term structure, and do not include many of the well-known fees and penalties. Here are some of the biggest benefits of getting a multi-family hard money loan:

●      Quick funding. Unlike getting a traditional commercial mortgage for a multi-family property, which takes weeks upon weeks and even months to secure funds, hard money loans offer rapid funding. Because hard money loans come from private investors, funding is quick, with a fast turnaround time.
●      No credit check. You also won’t have to undergo the credit scrutiny that’s associated with a traditional commercial mortgage. Instead, you’ll most likely pledge some collateral to secure funding for your multi-family home purchase. This is a huge benefit because of the size of the loan amount.
●      Flexible term structure. Banks are not known for their flexibility. And, this is more painful for those who try to go the traditional commercial mortgage route. By contrast, hard money loans do offer a lot of flexibility. Terms and rates are flexible, which is a huge benefit.
●      No prepayment penalties. Another advantage of hard money loans is there are no prepayment penalties. That’s an enormous plus and for good reason. If you are in need of a Hard Money Loan in the State of Texas, please see http://www.proactivelendinggroup.com

Comments

Post a Comment

Popular posts from this blog

Construction to Permanent Loan Process The construction to permanent loan process isn’t as scary or complex as people might think. If you’re considering building your dream home rather than trying to hunt down a resale and buy it, you’re certainly not alone. Even if you’re more partial to the building instead of buying a newly constructed home, you’re probably wondering how the financing works. So, let’s take a look at the construction of the permanent loan process. Construction to Permanent Loan Process The construction to permanent loan process isn’t all that difficult to understand. In fact, all fancy lingo aside, it’s quite easy to grasp. For your benefit, here’s a quick look at the construction to permanent loan process and what to expect. Construction Loans Explained Home construction loans are a form of short-term, higher-interest financing used to pay for the building of a residential house. These differ from traditional homes because they are not based on ...
Read more
Should Long Term Real Estate Investors Focus On Cash Flow or Growth? SAN ANTONIO - Jan. 25, 2017 - PRLog -- Per Bruce Myles, owner and founder of Proactive Commercial Lending Group , LLC,"a Texas Commercial Lender,"To answer this question, it's best to first define what the two terms mean. Cash flow, of course, is the net money gain/Users/denny/Desktop/ALL LEAD INS/PRESS RELEASE LEAD INS.txted or lost on a monthly basis. One mistake many rental property owners make all too often is believing just because the rental charge covers the mortgage expense, they are "making money." However, that's simply not the case. The rental income must not only cover the home loan payment, but also, the property taxes, insurance, and other carrying costs. As for investors who buy real estate to rehab and flip, underestimating the costs of renovation causes undue financial strain. It not only causes many to hold longer than they first intended, it also puts them in a anxi...
Read more
Hard money loans for real estate investors. Hard money loans for real estate investors provide more alternative forms of financing that are very advantageous in more than one way. In fact, hard money loans are a great go-to source for capital investments because these present a convenient acquisition strategy. So, let’s take a look at what hard money loans are and why these are often used by savvy real estate investors. Hard Money Loans Explained We’ll begin by explaining what hard money loans are and how they work. Compared to traditional bank financing, these are quite different. These are private debt instruments, funded by a group of investors. Put another way, a group of diverse investors pool their money together and loan it out. In return, they earn a profit while giving loan recipients some big benefits. Because of the source, this means there’s far less red tape to wade through and that’s a good thing for borrowers. Hard Money Loans for Real Estat...
Read more