What Are Hard Money Loans Used For?
Do you need money to complete a major transaction? If so, there are plenty of choices available. You need to think carefully about which loan option is best for your needs, and you might be thinking about hard money loans. There are a lot of people who have heard about hard money loans, but they may not know exactly what this means. What are hard money loans used for, and how can they benefit you?
Real Estate Transactions
Typically, hard money loans are used to complete real estate transactions. When people think about a real estate transaction, they usually think about a primary residential property. There are a lot of people who rely on traditional banks and credit unions for this purpose. However, if you decide to go to a bank, you are going to be limited when it comes to your loan options. Most banks and credit unions are going to provide you with a loan in accordance with conforming loan standards. This might make it difficult for you to get a loan, or you may have a hard time getting a loan with terms that you like.
One of the biggest benefits of going with hard money loans is that you have access to a variety of loan packages. You don’t necessarily have to conform to traditional lending standards, and it opens the door to a wide array of choices.
Furthermore, if you have been turned down for a traditional real estate loan, a hard money lender might be able to help you. For example, you might want to use collateral to reduce your interest rate, or you might want to change the amortization schedule. If you want to be in control of your real estate loan, you should consider working with a hard money lender who can help you.
There are a lot of people who assume that a real estate loan has to be 15 or 30 years. Fortunately, that is not the case. If you don’t plan on holding onto your property for a long time, you might want a short-term loan that has a more favorable payment plan. That is exactly what you will get if you decide to work with a hard money lender. You can get a short-term loan that allows you to save money on both the interest rate and the payment schedule. That means you get to keep more of the money in your pocket when you go to sell the property down the road.
Residential and Commercial Real Estate Investments
There are countless real estate investors who rely on hard money loans. You probably know that traditional loan packages are designed for people who are going to be living in a single house for decades. If you are looking for an investment property, that probably isn’t the best package for you.
You might be looking for a way to diversify your assets by investing in real estate. Maybe you are looking for a long-term rental property or a vacation property that can generate some additional income. If you need a residential real estate investment loan, a hard money lender can help you with that. Or you might want to rent your property to a local business. If you need money for a commercial real estate investment, a hard money lender can help you with that as well. It can be challenging to get a loan for an investment property using traditional methods, and that is where a hard money lender can be beneficial.
Contact Wildcat Lending to Learn More About Hard Money Loans
If you need funding to complete a significant transaction in Texas, make sure you think of all of the options available to you. We are Wildcat Lending, and we have a variety of loan options that could be right for you. It would be our pleasure to provide you with a hard money loan that can make it easier to complete your transaction on your terms. If you would like to learn more about how we can help you, contact us today to speak to a member of our team, and let us customize your loan package to meet your needs.