Depending on your familiarity with real estate, you may have heard the term “free and clear”. If you’re new to the world of investing and real estate, that may not make much sense to you. Free and clear is simply another way of saying that the property is free of any legal attachments that may affect the transfer.
For homeowners, being free and clear means that their home does not have any liens and the mortgage on the home is fully paid off. These homes tend to generate greater interest among buyers and investors seeking a home that does not come with another loan attached to it. Considering many investors need a loan to begin with (i.e.: hard money loans), it makes sense to seek out properties that are free and clear to avoid having to manage two different loans.
Free and clear homes also hold a strong interest among buyers willing to pay cash for a property. If the property is not free and clear, it presents a hurdle as the buyer will be unable to pay for the home until its mortgage is taken care of. With a free and clear home, the home falls under a cash buyer’s ownership without the fees or legally binding contracts typically associated with mortgaged homes.
Do you need a hard money loan to purchase a free and clear investment property? We can help.
This update is by 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 hard money loans Miami, please call 954-816-0388 or fill out our application.