Every real estate investor has been in the situation of running out of money before being able to put a property on the market at least once, but, while a few years ago, this would have been a real tragedy, as traditional bank loans applications take time and paperwork to be approved, nowadays investors can turn to the hard money lenders in Philadelphia for fix and flips financing. The faster the property is listed and sold, the more money it brings to the investor, so these hard money loans are invaluable.
A hard money loan is typically:
- Quick to close, sometimes in as little as 7 days. This gets you the money you need to start the project, so that you can finalize it much faster.
- Based, not on income or credit score, but on the value of the property, so very easy to obtain.
- A dependable source of financing throughout the entire project, making unforeseen set-backs less stressful.
- Available with a higher interest rate than other traditional loans, due to the higher risk the lender assumes. However, the interest rate is outweighed by the short loan period and the simpler bureaucracy.
Real-estate investors often find themselves in a situation where they have purchased a property as-is for a hard to resist price, only to find that there are multiple expensive problems to fix. Without the help of a hard money loan, these properties end up sitting and eating up time and money. Turning to the hard money lenders in Philadelphia for fix and flip funding is the easiest solution to save these properties and make profit.
It is wise to apply for the hard money loan on the same day you purchase the property so that work can start right away. There are some lenders that can close in as little as one week, which is vital to the success of any real-estate flip. Some of the costs saved by these quick and dependable loans include:
- Mortgage payments;
- Equipment rental.
Many more costs, including the fact that this particular project could prevent you from taking care of other projects, make time-saving tools like hard money loans a must-have for investors. Contacting one of the hard money lenders in Philadelphia for fix and flips funds is the best decision you could make and will ensure the success of your project.