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Fayetteville-North Carolina Hard Money Loans
Benefitting from its close proximity to the Research Triangle, Fayetteville is an up and coming city with a great deal of potential. This is why real estate investors and developers have long been interested in the region. If you fall into that category, you might be looking for some new financing options to help you execute a variety of deals that are out there for you. Conventional mortgages do not work for everyone, and they are not always conducive for the type of fast deal that you might be looking for. This is why you will want to look at the option of getting a hard money loan.
A Different Type of Loan
Hard money loans are different than conventional mortgages in many respects. The lender, such as Delancey Street, is looking more at the collateral in the property that you are proposing to purchase than they are in your ability to repay the loan. This is because a hard money loan is meant to be a short term loan that you pay back in full, with interest of course, in just a few years. Some terms are as low as 12 months. During that time, you may not even make any payments. You will either sell off the property or refinance the loan.
Let us take a quick look at four of the main types of hard money loans that are available today.
A Construction Loan
If you are looking to develop a piece of property, this might be the type of financing that you need. This will give you access to the cash that is required to get the construction started. As soon as the building is complete, you will be looking to sell the property in order to pay off the loan. Some people will also look to refinance the loan at the first available opportunity.
A Bridge Loan
Here is a form of hard money loan that is for an investor who is waiting for other deals to close. In the interim, you need to finalize a new purchase. This loan will give you the money that you need to do that, while you will then be paying it off with the proceeds from another property once it closes. Alternatively, you might refinance this loan as well when needed.
A Fix and Flip Loan
This type of hard money loan is growing increasingly popular, particularly in the Fayetteville area. It involves you purchasing a property on the cheap because it is in ill-repair. Your plan is then to quickly fix it up and sell it for a nice little profit. You would then pay the money back as soon as the property was sold.
An Owner Occupied Loan
As Delancey Street will tell you, this is not the most common type of hard money that is approved. Most hard money loans are for investment purposes only. However, there are some instances where you can get approval to buy a property that you actually intend to occupy yourself. You will need to show a detailed plan for you how you plan to pay off the loan in a short time.
Is A Hard Money Loan For You?
If you are looking to invest in real estate, and you understand that this is a short term form of financing, then you may very well find hard money loans to be a more than suitable solution. The approval process is quick, so you could actually be fully funded inside of a week. That is not possible with traditional lenders, so contact Delancey Street today to learn more.