Hard Money: A Time Game

In our line of work, we see all sorts of situations where our hard money loans provide solutions for investors, and buyers and sellers who are under pressure in hot real estate markets, or those who need a particular lending strategy to get ahead with a chosen real estate plan. 

It’s the nature of the game – because real estate is the biggest investment many of us will ever make, it comes with some particular challenges and unique circumstances. One of those is the time crunch, where hard money is a critical part of making deals happen.

How it Works

A lot of the process of securing financing for real estate involves successfully kicking the can down the road. The traditional 30-year fixed mortgage is an excellent example. In order to secure your property, you’re getting putting down a smaller down payment, and getting a monthly payment that you can make for the next 30 years or until you resell. Unless you turn up underwater, this is an excellent way for families or investors to build equity. So the value of the longer term 30-year loan is that it makes things manageable, which can be even more true with a bridge loan for amounts above what the amortization plan can easily handle. 

Making it Work

Making it work in real estate lending involves customizing your loans to your situation. Sometimes you need a bridge loan to make sure that a commercial lender will qualify you for a property with the available capital, income and credit that you have. Sometimes you want that 30-year fixed option, which we offer too, or you want to make equity into cash. We can do that, too. It’s all about having the options there on the table for you to take advantage of in a way that puts you in a confident position, relieves concerns about default, and satisfies everyone who is going to be assessing the deal. 

The Process

Knowing how to lock in rates helps, but we also have a critically solid underwriting process that means the deals are going to work. We know that one of the biggest hazards in this business is underwriting holdups, and we take that into account when working with our clients to get effective financing deals in place. Take a look at the rest of the website to see more about how all of this works and how it can and will benefit you as a real estate investor and borrower.