Hard money loans are short-term loans that are also referred to as non-conforming or private money loans. They are not offered by traditional lenders but rather by private lenders that are willing to use property or assets as collateral. These loans are used for real estate projects that rely on a fast loan approval and turnaround time.
Hard money loans are ideal for the fast-paced world of real estate investing. Many investors use this flexible financing option to purchase commercial properties that require repairs. The investors fix them up in order to sell them for a significant profit. For that reason, these loan products are also known as “fix-and-flip loans.” They are also great for rental property loans.
At Monroe Funding Corporation, we have flexible lending solutions and a quick funding process, unlike traditional loans from a bank. Since time is critical in a competitive real estate market, we ensure that we take the least time possible to fund our borrowers.
These are just some of the advantages of working with us on commercial loans:
• Borrowers do not need a good credit score for their loan to get approved
• Fast approvals that can take a couple of hours
• Transactions without limitations
• Flexible set of terms and conditions
• Devoted team to ensure our clients are happy
• Loan application is easy and accessible to many investors
In addition to serving Fort Lauderdale real estate investors, we also serve many other parts of Florida and the US.
Here are several common reasons real estate investors seek out hard money loans.
1. Flipping an apartment
Real estate investors buy low-cost houses that need fixing, repairing, and renovating. They then flip the homes for a significant profit. These loans favor them since house flippers usually sell homes within a short period. Thus, they don’t require long-term loans they would get from traditional mortgage lenders.
2. Buying an investment property
Many people who desire to invest in rental property but do not meet the requirements for traditional financing should look for hard money loans to pay their investment plan. These loans come in handy for investors who need more capital than traditional lenders.
3. Purchasing commercial property
Hard money loans are suitable for entrepreneurs who wish to purchase commercial property but lack immediate funds. In addition, when conventional financing is beyond their reach, working with a private money lender is a good alternative.
4. Purchasing single-family homes
Private money loans enable Fort Lauderdale investors to purchase single-family houses and apartment buildings. These loans are suitable for those who do not qualify for conventional financing.
Working with private lenders has other advantages besides the ease of working with our loan specialists. Hard money loans are convenient since investors do not require documentation, bank statements, or tax returns for loan approvals. Instead, the property’s value is used as collateral.
Need to learn more about working with a private money lender in Fort Lauderdale? Contact our team at Monroe Funding Corporation.