West Palm Beach is one of the hottest markets in the United States for property investors. That’s a good thing, because it means you can generate significant profits for your investment. However, it also means that you need a source of capital that you can count on. Why are hard money loan solutions a good choice for real estate businesses, fix-and-flip pros, and property investors in West Palm Beach, FL?
How Does a Hard Money Loan Work?
The point of a hard money loan is to help you get financing right away instead of waiting months for a traditional loan to get approved. This type of financing has easier qualifications and faster processing than conventional real estate loans. This can happen because the property you’re buying acts as collateral for the loan.
What Situations Require Hard Money Loan Solutions?
There are several situations when property investors often turn to hard money loans. You can customize the terms to benefit your specific goals:
- Multiple projects going on at same time: Larger real estate investors often have several deals happening simultaneously. Even though they generate significant profits, these investors may not have much working capital available to cover the next project. In this case, turning to hard money loan solutions is a smart idea, covering the missing amount for closing costs until another property sells.
- Great opportunity appears: Calling West Palm Beach a market with high demand is an understatement. As soon as you find out about an attractive property for sale, you have to act quickly if you want to swoop it up before another investor does. Having the ability to close ASAP can even allow you to persuade homeowners to sell to you directly before putting the home on the market.
- Loan taking too long to clear: Traditional loans usually take at least 3 months to clear in Florida. That’s a long time for a property investor to sit around waiting. With hard money loans, you can get the real estate right away, get started on any work needed and sell it as soon as possible. For long-term property investments, you can transfer the higher-interest balance to a low-interest loan when it gets approved.
- Credit score isn’t great: If your credit rating isn’t exactly star quality, it can be difficult to qualify for a conventional real estate loan. Fortunately, asset-based loans don’t focus much on your credit score. What primarily matters are the value and condition of the property you want to buy. Even the application process deals mainly with real estate documents, not business records.
- Funds wanted for remodeling: One of the most common issues real estate investors run into in West Palm Beach is getting turned down for remodeling loans. Many traditional lenders don’t want to touch remodeling projects with a ten-foot pole. That’s sad because some smart improvements can massively increase your asking price for a property. Hard money loan solutions easily finance renovations such as bathroom additions, outdoor kitchens, lanais, open-concept dining rooms and countless other projects.
- Property needs significant work: Similar to the situation with remodeling, trying to get a conventional loan for damaged properties is a real challenge in West Palm Beach. You notice a diamond in the rough that you can sell for way more than its purchase value. Lenders only see a massive risk. Hard money loans can help you achieve your vision for this type of investment.
Learn More about Hard Money Loan Solutions
To learn more about bridge and hard money loans in West Palm Beach, contact the experts at HML Solutions today.