Evansville-Indiana Hard Money Loans
Given its proximity to Louisville, the Evansville area has a great deal going for it. This is a working-class city that has a great deal of history. It is now undergoing a resurgence of sorts and real estate projects are popping up across the region. It is a great time to get involved if you are an investor or a developer. However, you might not be able to wait around for the long approval process associated with a 30-year conventional mortgage. You may not even qualify for such financing. That is why you will want to talk to Delancey Street and inquire about the possibility of receiving a hard money loan.
Information About Various Types of Loans
When talking about hard money loans, it is important to know that they are designed for different purposes. The lender will look at the specific reason you need the money and then work to match you up with a loan that is suitable for your situation. That being said, it is helpful to know what the process entails and what is out there available for you. Here is a description of four of the main types of hard money loans offered by lenders such as Delancey Street today.
- Loans To Fix and Flip a Property – This type of hard money loan is for investors who have located a value priced property that they would like to buy, fix up, and then quickly sell. A hard money loan is ideal because it provides quick access to cash and you will be able to pay it off with the proceeds from the sale after you fix it up.
- Loans To Occupy a Building – We should say up front that this type of hard money loan is more difficult to get, as such financing is typically reserved for investment purposes only. That being said, you might be able to get short term financing to occupy a building yourself if you can demonstrate a plan to pay off the loan within a year or two.
- Bridge Type Loans – This is a popular type of hard money loan that enables you to get cash to close on a deal today, with the reasonable assurance that you have another property that you are in the process of selling. You would then use the proceeds from that sale to pay off this loan. Another option is to refinance.
- Loans for Construction – If you are ready to develop a project, this is the type of hard money loan you need. You will get the money to get the building started. You will then refinance the loan or sell the finished building as quickly as possible to pay it off.
The Purpose of Hard Money Loans Explained
It is important to remember that these loans are different than conventional mortgages. That is actually what makes them appealing to many investors. You will not have to go through a lengthy approval process that could take a month or more. If approved for a hard money loan, the process can often be completed in under a week. In exchange, you need to know that this is meant to be a short term real estate loan. You will need to pay it off in full within a few years. In fact, many loans will not even require monthly payments, while some might ask you to just make interest-only payments until you get the money together for the principal.
If you are interested in hard money loans, contact Delancey Street. Let them know what you are looking to invest in and they will be able to go over the options with you.