Finding money to fund your deals is one of the hardest parts of being an investor. It takes almost all of your time and energy to do this, but there are actually a lot more options now to get the capital you need. You’ve probably heard of hard money loans but often don’t consider it as it’s not exactly the “conventional” means to get capital. Before you skip on getting a hard money loan, you should check out the benefits of getting on, so you know just how convenient it is if you need some extra money for your investments.
Benefit #1: Speed
In today’s real estate landscape, it’s essential to be able to close your deals as quickly as you can. Sometimes the speed actually matters more than the amount you offer. Too many people have been burned in the past, waiting for deals to close that never do. You’ll find that many sellers prefer to sell their property at a lower price if they can close it in a week than waiting several more days. Getting a hard money loan will get you the financing you need to close your deals in a timely manner.
Benefit #2: Volume
With speed also comes the ability to close more deals in a short period of time. Shaving a few weeks off every rehab project, you start can be a huge deal since you’ll have more time to start on a new project. If you’re quick enough, you’ll be able to close two or three times the usual volume you have the previous year. Because of how convenient and easy it is to get a hard money loan, you can get more money to invest and pay it off faster than you usually do.
Benefit #3: Quality
Having capital to close your deals may be the most immediate benefit of getting a hard money loan. However, what most people don’t realize is that you also have the opportunity to do whatever needs to be done for the property. Instead of cutting corners to save money, you can do the necessary work and maximize your bottom line. This is a great way to establish a good reputation in the real estate industry and your clients.
Benefit #4: Bigger Projects
Having more capital means you’ll be able to take on bigger projects that could yield better returns. While most investors start with single-family homes, you can slowly build your way up to other property types like multifamily properties or even commercial real estate. While it’s entirely okay for you to stick with single-family properties, when the time comes you want to explore other options than you are more than capable of doing so.
Aligning yourself with a DFW private lender you trust is always a great advantage to have, especially if you’re planning to take out a hard money loan for your investments. Make sure you work with a reputable hard money lender so you can get what you need to increase your capital should you need to.
DFW Investor Lending is the number one DFW private lender in the area. With decades of experience in the Dallas-Fort Worth Metroplex real estate investor community, we provide services that exceed your expectations. If you’re ever in need of a reliable DFW hard money lender, don’t hesitate to call us!