With real estate investments, time is a critical factor. Lucrative properties are seemingly purchased the moment they are listed for sale. Because of this, hard money loans are a highly effective tool for real estate investors to use. How so? As we’ve mentioned in the past, there is little bureaucracy involved with hard money lenders, which means the application process is significantly expedited and decisions can be made quickly.

Obtaining the all-important financing for an investment can be done in a matter of days versus weeks, in some cases the very next day. This incredibly rapid process dramatically lowers the window of being able to close on a property within a short time frame, boosting seller motivation and potentially improving the odds of the seller agreeing to a lower negotiated price.

For fix and flip projects, hard money loans are incredibly useful. The terms for a hard money loan are quite short, in many cases just a few months. When a property is expected to increase in its value in a short amount of time, these work great. Most hard money loans are based solely on interest. This also greatly benefits a real estate investor seeking something short term since it cuts down on the monthly loan payment.

A balloon payment when the loan ends may seem intimidating to budding real estate investors used to amortizing a mortgage balance over a term of one to thirty years. Then again, experienced professionals are fully aware that loans based on interest are a superior application of leverage.

This update is by Miami hard money loans company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on money lenders FL or hard money loans Miami, please call 954-816-0388 or fill out our application.