Should You Use Loans for Real Estate Investments?
What Is a Private Money Loan and How Does It Work?
The Advantages of Hard Money Loan
- Quick Access to Money: Unlike the application for regular mortgage loans, applying for a hard money loan will only take weeks. You can even request a considerable amount for large-scale projects.
- Freedom to Negotiate: Lenders for this loan type are usually private individuals or companies, creating space to negotiate regarding the terms.
- Leniency in Collateral: Usually, the only collateral requested from this setup is the renovated property itself, but since this loan service is a bit flexible, you can negotiate if they will allow you to use other personal assets.
The Disadvantages of Hard Money Loan
- High Cost: Anything that is serviced and delivered fast will also have its equivalent worth. Borrowing from this loan type can cost you around 10 percent more than the usual amount.
- Short Timeline: As its name suggests, this loan type will require a shorter payment period than the traditional loan. Before acquiring a Hard Money Loan, make sure you know when you can profit from your property and how early you can repay your debt.
Call the #1 Dallas Hard Money Lender
Whether this is your first real estate deal or you are a seasoned professional, DFW Investor Lending has a loan program for you. We are your Dallas hard money lender to help you kickstart your real estate investment. Contact us today at (214) 382-2676 to learn more about our programs.