With interest rates so low, anyone looking to invest has to wonder: why should I use hard money, instead of traditional loans?
Here’s the reality – if you’re looking to buy real estate for investment purposes, you might not be able to use bank financing. The meltdown of 2008 was in part, due to a lot of people using bank financing for investment purposes in real estate. When the crash happened – banks were stuck holding all of that bad debt. Banks have so much business when it comes to consumer home loans, and refinances, they don’t care for the extra investment business. Second, even if they choose to help you with your investment property – they take too long.
Most real estate investors don’t have 45-60 days to close a deal. Deals go to investors who can close in 10-12 days. This is why you might turn to hard money. hard money lenders can help you acquire property fast. At Delancey Street, we can fund loans in 5-10 business days. In addition, we can waive things like appraisals, and reports on the property, and other underwriting guidelines. Moreover, we’re not FICO driven – so we don’t waste time.
In today’s competitive market, you need to be nimble as a real estate investor. Opportunities are tight, and few, so you need to be able to capitalize on them SAP. Moreover, you need a partner who understand the needs of a real estate investor. Having a good hard money broker can be the difference between making millions, and sitting on the sidelines.