It's no secret in the world of real estate that using hard money loans can be a smart and profitable way to fund your investments. Real estate is a field that requires substantial capital to get started, and many people simply don't have access to that kind of money. For instance, a typical borrower looking to take out a business loan from a bank would need to have already been in business for two years with at least $250,000 in annual revenue. More than that, they'd also have to have good business and personal credit scores with a positive cash flow.
With hard money lenders, however, you can often fund a loan much more quickly -- which is important in an ever-changing real estate market. So whether you're brand new to real investing or an old pro, using hard money loans can help you get your foot in the door of a new building. Here are just three clear examples:
With the recent market interest rates, house-flipping has witnessed a recent surge in popularity. So-called "flippers" can get hard money loans to finance the purchase of an under-market house, fix it up, and then sell it for a substantial margin of profit. This has become especially useful as more young families start looking for starter homes.
- Commercial Developers
The same holds true for many commercial real estate developers. You may have found a perfect piece of property, but you need to attract the right tenants. A private hard money lender can provide you with the cash you need to tide you over until the first month's rent starts flowing in.
- Vacant Land
Pre-existing houses and structures are great for investing, but what about the potentials of undeveloped land? Raw land itself is a fast-dwindling resource, especially here in California where the population seems to be always booming. Being able to act fast on a prime piece of land can be extremely valuable for investors of all stripes.
If you're looking for hard money loans, go with a private lender you can trust. Contact us at Maggio Capital today for more information on how to make your real estate investments easier and more profitable with a better way of borrowing.