Hard Money Loans: The All-Purpose Solution For House Flippers
Flipping houses is becoming a staple for those people with an entrepreneurial spirit who want to transition from their regular jobs to the world of commercial real estate. However, when larger financing on a property is still being processed, there are still immediate expenses. To cover those time-sensitive obligations and keep house flipping projects on track, commercial real estate investors turn to hard money loans.
What Exactly Is Hard Money?
“Hard money” is just another way of saying real financing based around an asset instead of a credit score. In the case of hard money loans, the financing is structured around the value of the property. Hard money loans are designed so the financing is made available quickly, which is why they are used by house flippers and property developers. Many house flippers figure the amount from a hard money loans into larger financing. Once the larger loans are processed and funds are disbursed, the financing from the larger loans is used to repay the hard money loans.
What Advantages Do Hard Money Loans Offer?
Even if larger loans are still in the pipeline, house flipping projects still have immediate expenses. Closing costs, inspections, lining up contractors for renovations, permits, and more need to get paid to ensure house flipping projects do not get delayed. Even after a house is completely renovated, listing costs need to be covered, and it always helps to stage a house properly to give potential buyers a better understanding of what the home will look like when it is “lived in.” The small cost of renting furniture can go a long way toward selling a property at or near the listing price.
Always Keep The Bigger Picture In Mind
Having the right financing to meet immediate expenses means houses can be fixed and flipped quickly and efficiently. This gives house flippers the breathing room to scout out the next project. In the end, house flippers are not simply turning a profit. House flippers are breathing new life into a home and an entire neighborhood. Through planning and efficient financing, house flippers increase the value of property throughout an entire community, and bring in new homeowners who will contribute to the local economy.
Finance Your Next Fix And Flip Project
BG Capital Funding Group is committed to helping house flippers and property developers take on projects of all sizes. Whether you need a hard money loan or a larger, more customized solution, we can help. Contact our offices today to learn more.