Hard Money Loans: Why CRE Investors are Making the Switch
If you’re just starting out in the real estate industry, or if you’re thinking about jumping into this exciting venture, you probably already know there are many challenges and benefits to this career. Real estate has tremendous potential for those willing to put in the work and for those who understand what it takes to be successful. Of course, early in your business, you may not have the cash to purchase properties, especially if you’re in the commercial real estate market. This is why many CRE investors are turning to hard money loans for help. This form of lending is gaining popularity, and it’s no wonder. There are several reasons you should consider this when you’re ready to buy your first or next commercial property.
Fast Approval and Funding
Like many industries, the real estate world is ultra-competitive. If you rest too long, you could miss out on a huge deal. You don’t want to let time pass you by while you watch someone else grab an attractive property. You’ll love that hard money loans come with quick approval times. It’s also satisfying to see how quickly you can have the funds in your account once you’re approved. Often, you can apply for a loan and receive word of approval on the same day. You only need to provide some basic information such property stats, down payment amounts and how long it will take you to repay the loan. Once you’re approved, you could have the money you need in as little as five days—sometimes even faster.
Will Approve When Other Lenders Won’t
There’s no doubt that it can be frustrating to apply for a loan, only to have the bank turn you down because the lender isn’t comfortable with the property or your venture. For example, if you simply want to buy a commercial property, repair it and then turn around and sell again, hard money loans are a great option. Banks often steer clear of these situations, but the hard money variety can work wonders in these cases.
Hard money loans aren’t just fast; they bring few headaches with them. You won’t have to worry about a long, drawn-out process of paperwork and endless back-and-forth emails. You only need to furnish a few items. It’s a much less cumbersome process compared to a traditional loan.
When other lending methods fail you, don’t give up. Look for the fast and hassle-free solution of hard money loans.