Whether you’re flipping houses in California or investing in new commercial space in Arizona, it’s important to consider where your loans are coming from and how best they can benefit you. When you’re applying for a traditional bank loan, it’s easy to become inundated with all of the red tape and strict lending guidelines. If you need money and flexibility, private hard money lenders are who you need to be turning to.
hard money loans are typically the most effective and beneficial for real estate projects, and private lenders are the people who can help you attain them. If you’re in the market for hard money loans, here are a few reasons you need to be working with private lenders.
Quick Access
Perhaps the greatest benefit of working with hard money loans is that this kind of money is easy to access. Rather than having to trudge through miles of red tape at the bank or in another traditional lending institution, there’s much less of a struggle to attain a hard money loan from a private money lender. Because this kind of loan comes from investments like stocks and mutual funds, the conversion to cash is simple and fast. Not only is it easy for a lender, it makes starting that project of yours that much easier.
Cash
When you get right down to it, private money is cash. While a traditional bank loan is given out as credit, hard money is exactly what it sounds like. When investment funds are converted to cash, that’s it! There’s cash available and it’s there for you to use as you please.
Flexibility
Unlike repayment terms on a traditional loan, there’s a certain amount of flexibility when it comes to repaying your private hard money loan. If you need more time and less interest, it’s likely that you’ll get exactly that amount of flexibility from your private lender.
Attaining, utilizing, and repaying private money loans is much simpler than you might think. And if you’re working on a home renovation or a house flipping project, this type of loan and lender are perfect for the job.