Jackson is such a historical part of America. It is well established and contains many old houses and buildings that have made it into one of the storybook sensations of the South. At the same time, it is experiencing a resurgence of sorts, with real estate investors looking to develop new areas that appeal to the modern generation. If you are looking to get in on the ground floor of some deals, you might need access to quick cash that conventional mortgages may not be able to provide you with. This is why you will want to consider hard money loans in Jackson, the likes of what Delancey Street are able to provide.
Different Types of Hard Money Loans Available
The beauty of this type of loan is that they fulfill many different needs that today’s real estate investor might have. A non-traditional lending firm like Delancey Street is able to go over the options with you that might make sense given your situation, but we the list below will detail some of the more common uses. A hard money loan focuses on the collateral in the property itself. Your actual ability to pay off the loan is not as big a consideration. This is a way of getting short term access to the cash you need to close a deal.
If you are a real estate developer, you can apply for a construction loan to help you get quick access to cash that will enable you to start a project now. Time is often of the essence here, so this loan will give you the money you need to do the construction, get it sold, and then pay off the loan.
A Bridge Loan
There are times when you have money coming in, but not quick enough to make a deal happen. A hard money loan is a short term solution to this dilemma. You can get the money now, close the deal, and then sell it or refinance to get the money to pay back the loan. You might also have another property that you are in the process of selling. If so, you can then use that money to get the down payment required to refinance.
A Loan To Occupy the Property
Although not as common, you could possibly get approved for a hard money loan in order to occupy the property that you plan to purchase. This is a way to get into a property that is of good value when you are not able to qualify for another type of mortgage. You will still be under the same short term repayment obligations, so keep that in mind.
A Loan to Flip and then Sell
As an investor, you might find a property that is an extremely good value but needs to be fixed up. Your plan is to do the renovations and then sell it as quickly as possible for a profit. A flip and sell loan provides access to hard money that you need. You will be able to get the loan paid off quickly and walk away with the proceeds.
A Short Term Mortgage Option
In summary, hard money loans are designed to be short term solutions for individuals interested in real estate. You will get access to some cash, often within a week of applying for the loan, and then you will pay it off within a few years. Some loans are due within 12 months, so keep that in mind. You may or may not need to make interest-only payments in the interim, but Delancey Street can go over the options with you.