4 Benefits of Using a Hard Money Loan for Construction
For real estate investors looking to move quickly, hard money lending offers a faster and simpler alternative to conventional loans. Whether it’s for purchasing a property, a bridge loan, or a fix-and-flip loan, hard money lenders provide a more streamlined process compared to conventional lenders. Traditional construction loans can be time-consuming and difficult to secure, often causing delays with lengthy approval processes and intense scrutiny. However, hard money lending allows investors to access the funds they need with greater speed and flexibility.
As an investor with choices, there are several reasons why you might prefer a hard money loan over a conventional one, even when both options are available.
1. Avoid construction start delays.
Hard money loans close quickly, often in as little as five days, while conventional loans can take months. Whether you’re financing an entire project or need quick cash during a critical phase, hard money lenders offer speed and flexibility. Delaying a project can lead to added expenses and further delays, as subcontractors may prioritize other jobs.
2. Avoid construction project delays.
Conventional lenders release funds in stages with extensive documentation, while hard money loans offer a faster, more flexible draw process. This allows you to purchase materials and hire subcontractors sooner, keeping your project on track.
3. Get less scrutiny from lenders.
Securing a loan from a conventional lender involves numerous hurdles, and even after approval, the paperwork can delay your project as subcontractors wait for payment. Private lenders, however, manage their own funds, enabling faster responses and quicker draws.
4. Get more flexibility for qualification.
Conventional lenders have strict borrower requirements, making it hard to secure a loan with poor credit. Hard money lenders, however, focus on equity and the deal’s details, making it easier to get a loan with a solid plan and enough equity.
How Do I Get a Hard Money Loan?
To get a hard money loan, start by finding a reputable lender, which can be a private individual or company. Instead of focusing on your credit history, the lender will assess the property’s value and your plan for repayment. You’ll need to prepare a proposal outlining the project and its estimated value after completion. Once approved, the lender will offer loan terms, typically higher interest rates, and a short-term duration. The process is quicker than conventional loans, often closing within days, allowing you to access funds faster for your project.
Contact Mass Hard Money For a Reputable Private Lender
If you are looking to speed up the process on your construction project and avoid any delays, using a private lender can help you get the funds you need quickly. Contact Mass Hard Money to learn more about how our hard money loan options can provide the flexibility and speed to keep your project on track. Whether you’re purchasing a property, doing a fix-and-flip, or need a bridge loan, we offer tailored solutions to meet your needs. Give us a call today at (617) 892-9099 to start the process and move your project forward with confidence.