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Hard Money Bridge Loans - A Perfect Way To Finance Your Commercial Property Purchase

 

Hard money is the financing option for flipping real estate properties, and many investors are turning to hard money financing to buy foreclosure houses. It allows you to finance a property with no down payment or cash out. As a general rule, hard money lenders are usually higher risk than conventional lenders. This higher risk attracts them to put more of their money into your hands when you want to take advantage of this unique opportunity.
 
Many real estate investors turn to hard money bridge loans to get financing for homes they plan to flip. This option gives you access to capital that conventional banks do not offer. Traditional banks offer only first lien or hard money options for first time borrowers. This limits your choices and keeps your investment waiting for approval from a conventional bank. Discover more facts about loans at https://www.britannica.com/topic/business-finance.  
 
Hard money lenders can help make your flipping investment properties a success. They will provide you with the money you need to purchase investment properties and complete the transaction quickly. You can use hard money bridge loans to flip properties by avoiding the usual hassles involved in conventional bank financing. The borrowers benefit because they can fund their purchase with the money from the sale of the investment properties. They do not have to worry about qualifying for a traditional bank loan, proving their credit history, or securing additional financing. See the hard money loan requirements here!
 
Lenders like to see a solid credit history for potential borrowers. In fact, it is a requirement for traditional loans. But when you deal with hard money bridge loans, the borrowers can qualify based on their current income. There is no credit check for the borrowers, so they do not lose any points with the lender because of having bad credit. Lenders also like to see a strong employment history because employment is a good indicator of someone's financial ability to pay off debt as well as support themselves.
 
Lenders are willing to approve hard fix and flip loan faster because they come with longer repayment terms. It can take a couple of years to recoup from a commercial property purchase. That means there will be a large payment each month for the life of the loan. With a traditional commercial property, the payment may be twice or even three times the cost over the term of the loan. That is not something most borrowers want to deal with.
 
Many borrowers turn to hard money bridge loans because they offer a quick way to finance their purchase. Traditional lenders require borrowers to put down collateral for the loan. This collateral can be in the form of an expensive property that could be lost if the borrower does not pay off the loan. Some lenders are offering hard money bridge loans without collateral to qualified borrowers. If you have good credit, the terms of the loan can be beneficial with the right lenders.