If you’re interested in becoming a real estate investor, you’ll find that the financing options are very different than those for a house you plan to live in. As you research options, you’ll quickly read about the hard money loan. This type of loan is very different from a typical home loan. It is issued by a private lender rather than a bank. The terms of the loan are quite different from a residential loan. The interest rates are usually higher, and the term is usually shorter, ranging from a few months to a few years.
Private Lending Is the Way to Go for the Real Estate Investor
Hard money loans are issued to people who are purchasing real estate to fix up and sell or rent. The buyer will not live in the property. Approval for a hard money loan can take just a few business days. These loans are ideal for people who need to move quickly on an investment property and do not have the time to go through a conventional bank’s long process. Going with a private lender is usually a better plan for full-time investors. Their financial situation will be less appealing to a bank. Private lenders are able to take on more calculated risk.
If you need financing for investment property, call Lending Xpress. We’ve been doing this for years, and we’ll be happy to help you find the right loan for your property.