No matter the market, real estate presents a number of potential investment opportunities for those who are willing to get into the mix. For some, the opportunity of finding a “can’t miss” location for their storefront, brick and mortar, business is undeniable and can be a gateway for future success. However, not everyone has a blockbuster idea which translates into immediate revenue, especially in the online, digital world of today.
For others, finding slightly used items or anything with potential re-sale value, individuals are able to purchase an item and then sell it at a higher price to make a profit. When real estate becomes involved, not only can someone execute a similar plan but for many, contributing a sizeable amount of money into a project can, in turn, translate into a much higher reward when the piece of property eventually sells on the open market.
However, as the saying, “it takes money to make money” drives home a hardened point, there are financing options available for those with these intentions. While not every deal is going to be a home run in turns of investment purposes, when completing the required documentation and funding with the right hard money lender, a seamless and profitable business exchange is possible.
Other factors can also influence the need for a hard money lender unrelated to simply the pursuit of a personal financial goal, business venture, or monetary gain. An individual may be faced with one of the above situations but also suffer from credit issues or other mitigating factors which may keep him or her from closing. People who find themselves in these shoes can also benefit from a properly executed hard money lending opportunity in an effort to ensure both parties maximize their earning potential.
Following is a closer look at what situations would require a hard money loan and how each may also benefit from such a deal. These are general in terms of application but also practical and contain a “real world” applications for the success of everyone involved with the closing on such a contract.
While the funding of a complete owner or builder construction loan
for a ground-up construction project is not something for which a hard money loan may be beneficial, the application can pertain to certain aspects associated with the building opportunity. Hard money lenders can assist with construction projects that have reached a stopping point in terms of original funding or where an original lender elects to stop funding a project.
For these types of situations, locating a reputable and established hard money lending service can allow the process to continue on until completion. Construction projects are often under strict time guidelines and should an original funding source run dry, back out, or negate to continually back a project, a builder or investor can rest a little easier knowing there are other viable options available to ensure the completion of a project.
The acquisition of land is another vital market in the real estate world and can be beneficial for an investor. Construction projects of retail sites, homes, and municipality buildings continue on a daily basis across the country but land is one thing of which there is no more being made. For this reason, the purchase of land has been a viable market producing significant amounts of funds for those fortunate enough to own a piece of property deemed “valuable” by someone else.
Typically, the funding of land is provided on a case by case basis depending on a variety of factors associated with both the individuals seeking money for the execution of a deal and the worth of the property in question.
Another aspect of investing and getting a return on your money is the concept of “flipping” real estate. While hard money lending often applies to commercial real estate only, there are invaluable tips which can be learned from those or incorporate a similar strategy in the residential real estate market.
The successful house flippers
often work within a variety of concepts in order to ensure they receive the maximum benefit from their real estate investment. These include purchasing the property at an appropriate price in addition to hiring the right contractor and having almost immediate access to cash.
While these same principles may not apply to commercial properties, the same type strategy can easily be executed within the commercial market. Buying a property and investing a little money (often of the hard variety for timing purposes and ease of execution as opposed to a traditional bank or funding source) can lead to a successful practice in only a few profitable closures.
Often the timing of a deal can lead to hard money becoming a front-runner for the chosen investment opportunity. When an investor needs to act quickly, securing the funding for a project in addition to choosing a method within a reasonable amount of time is essential.
These factors can make for a tricky situation but something that can easily be attained through the proper channels and with a reputable organization. The quick execution of a lending and financing process can help to alleviate any potential shortfalls that may arise from other funding sources.
Finally, when a potential buyer has credit issues then alternative methods are needed. While traditional funding sources can be beneficial, they far too often limit the availability of sources. These restrictions lead to individuals hoping to execute a commercial closing plan finding an alternative option - hard money lending.
This method can help to ensure that all sides associated with a particular deal are adequately compensated for their time and money.
If you find yourself in need of hard money lenders for any of the preceding applications, or are ready to move forward with a contact, then come see the experts at COHI Capital Private Equity Lending
who can help you determine and analyze your individual needs. After their free consultation, quality experts can offer meaningful advice and help to set up a beneficial plan immediately for all involved parties in order to achieve the goals of everyone involved in the process. They will decide what type of loan will work best for you drawing on experience and benefits of finding successful funding needs for over a decade. A full detailed review of your situation can be completed in addition to resolution issues and monetary considerations. Request some additional information by contacting COHI today. Call 970-922-3277 or contact us
for a decision. Often these are made the same day and can be addressed depending on client needs and schedule.