Real estate investments are always a lucrative venture. However, many first time investors do not have the upfront capital to buy or build a property. They are left with the option of borrowing from financial institutions.
When applying for loans, many eligible real estate investors face a myriad of challenges. Key among these challenges are poor credit scores, unattainable collateral and too many prerequisites for eligibility.
Taking loans for real estate investment
If statistics are anything to go by, the number of eligible real estate investors locked out of the industry is worryingly high. Yet there are those investors who believe in the proposition that the interests on real estate loans are high. They either procrastinate on investing or shelve the idea altogether.
If you subscribe to this school of thought, you are not alone. Many others have toyed with this idea, and it is time to dispel the rumors, demystify the myths and set the record straight. The following are reasons why borrowing finances to build or buy a home can be a good idea.
You qualify for hard money loans even with poor credit score
Perhaps the biggest reasons why eligible home owners do not purchase homes is poor credit score. This score is calculated using your past history of borrowing and paying loans. It is often an unfortunate impediment to achieving your real estate investment dreams.
Luckily, most hard money lenders overlook your credit score or history. In fact, some do not consider it at all. They believe that past events should not be used to define your current ability to secure credit.
Hard money lending is faster than all other alternatives
When you have set your sights on a viable real estate venture, borrowing from hard money lenders is easy. Where traditional bank mortgages are time consuming, obtaining credit from hard money lenders is fast.
Today, regulations in financial and lending acts force ordinary financial institutions to conduct lengthy investigations, further delaying your real estate investment plans. On the other hand, hard money lenders will only look at your proposed project to determine your eligibility for financing.
Enjoy flexible collateral and terms of repayment
Did you know that you can use your real estate property as the collateral of your loan? Most hard money lenders value your project and use these figures to determine how much you can qualify for, making the loan application and processing easier and faster.
Real estate lenders look at the expected proceeds of your real estate property. They use these estimates to determine your monthly or annual interest rates. Simply put, hard money lenders can predict the viability of your real estate project.
It is good to note that the rules of hard money lenders are not cast in stone. As you will approach individual private lenders, you can negotiate the terms of engagement with each. Compare the interest rates before signing a deal with the lender that best meets your objectives, and then go ahead to set up your real estate investment. The easiest way to find a hard money lender that matches your needs to through our platform. Answer a few quick questions and get connected with lenders that match your exact investment criteria.