Starting with hard money loans
Has anyone started there real estate business with hard money loans? I’m new to real estate and looking to transition into it full time. I’ve been doing a lot of research. Just want to know the pros and cons
Most Popular Reply
There are several reasons why you should utilize a hard money loan.
The reasons one should consider hard money, in my opinion, are as follows:
The property to be purchased might be presently vacant and in need of repairs. It may be an older property in a failing neighborhood which has the potential for revitalization. It may be a foreclosure and can be purchased on a short sale.
You may just need a quick closing to secure a property before you find an investor/rehabber to which you want to wholesale the property.
You may want to purchase a run down piece of property, rehab the property, and refinance it for rental income.
In all these cases, you would need a hard money loan because conventional financing is not an option or it would take too long to secure.
Hard Money/Private Capital is just a cost of doing business and is an effective method of doing business as a real estate investor.
I hope that helps.