As one of the fastest growing suburbs in the Phoenix Metropolitan region, Peoria has long been a city on the rise. There are numerous opportunities here, and the real estate market has been sizzling for quite some time. If you are a real estate developer looking to make some deals in this area, you might find that conventional mortgage options are not for you. They not only take quite some time to go through the application process, but not everyone qualifies to begin with. If that is the case with you, the short term solution you are looking for could be found in hard money loans.
Options Are On the Table
Investing in real estate takes on many shapes. You might find a property that you want to fix up and sell at a profit. On the other hand, there might be some land that you are hoping to quickly develop for residential or commercial purposes. There are many more reasons why you might need access to quick cash in order to make a deal work. Waiting around for a mortgage lender to decide on the fate of your application could mean that somebody else beats you to the punch. Hard money loans, such as those provided by Delancey Street, will help you avoid this.
Here are some possible solutions for you.
- A Construction Loan – As its name implies, this type of loan will give you access to cash that you need to develop a property. You will want it to be something that you can quickly build and then sell. Your aim is to pay off the loan quickly, or to refinance it.
- A Fix and Flip Loan – This is a popular type of hard money loan. If you find a good valued property in Peoria that is in need of repair, getting cash to quickly close the deal is what you need. You will then fix it up, sell it, and pay of the loan. This will all typically happen within a year or two.
- An Owner Occupied Loan – While not the most common type of hard money loan, it is possible to use this type of financing as a means of getting into your own home. You would then work to refinance the loan within a year or two.
- A Bridge Loan – For times when you just need to use some cash for a short time before other money is made is available to you, a bridge loan is there for you. You might have another property that you are in the process of selling. When it closes, you would then use some of the proceeds to either pay off or refinance the hard money loan.
These are just a few types of hard money loans you might consider. Delancey Street can go over other options that might work for you as well.
The Usefullness of Hard Money Loans
Many real estate investors have grown frustrated with the long process involved with qualifying for a conventional mortgage. In addition, that is a type of loan that not every purchase or investor will qualify for. You do not have to give up. The deal can still be closed with a hard money loan.
Keep in mind that hard money loans are designed for short term purposes only. Most of these loans will need to be paid off within just a few years, as opposed to up to 30 that you will get with a conventional loan. The tradeoff is that you can close on this type of loan quite quickly, often inside a week.