Real estate investments provide many benefits such as tax incentives, reliable rental income, and much more. Unlike the unreliable nature of the stock market and low interest-bearing saving accounts, real estate can provide safe investments that withstand market changes and increase value.
Raising capital and securing investments might not be as challenging as many often think. You want sources with a proven track record that offer you the security of return on investment. The types of options available are:
- Bank loans
- FHA loans
- Self-directed IRA accounts
- Wholesale, peer-to-peer (P2P) loans
- Hard and private money loans
While there are many options available, finding the right one for each unique situation is important.
Hard money lenders are licensed professionals and can offer loans. Typically, a higher value is placed on collateral than credit scores, which can be a good option if you want to invest but have a low credit score.
A considerable advantage to hard money lenders in Palm Beach is that loans often arrive relatively quickly. It can take more than a month to receive a bank loan, but the maximum time for a hard money loan is around ten days. Hard money loans are an excellent option for rehabbing or flipping a property.
If you are looking for commercial real estate, know that there may be higher profit margins along with a higher price tag, and complexities in financing. Residential real estate is stable and less prone to dramatic shifts in the market, and it is easier to raise capital.