When it comes to house flipping and home rehab projects, property investors typically choose three financing routes: a hard money loan, a private money loan or cash.
Which is the best?
Hard money loans have the most advantages for those looking at real estate as an investment opportunity. Here’s why:
1.Hard money is available when you need it.
Get preapproved for a hard money loan and you’re ready to act when an opportunity arises.
2.Hard money provides you real estate connections.
A. Find a hard money lender who is also an investor and you’ll gain a wealth of connections and opportunities. GL&L Holdings meets this criteria.
3.Hard money provides insight. A valuable hard money lender has experience and knowledge in house fix and flipping, home rehab projects, rental units, working with contractors and more.
A. Along with having funding when you need it, you gain extra value with expert guidance on what to do and what not to do in real estate.
Hard Money Loan vs. Your Cash
1.Hard money opens the door to opportunity. With cash, you limit yourself on the size of the project based on the available cash you have. No investor wants to watch a lucrative investment opportunity slip by due to not having available cash when needed.
2.Hard money allows you to leverage funds. Many property investors use hard money loans to leverage funds and do multiple fix and flip projects at a time. The profit of multiple projects compared to a single project quickly outweigh the fees of a hard money loan. Typically, a hard money loan allows you to rehab four houses for everyone you could do with cash.
3.Hard money lenders are experienced in real estate investing. When using cash, you have no second set of eyes to look at contracts or property. You also lose the wealth of guidance experienced investors can provide, especially if you are new to property investing, from what contractors to use to tips in house flipping. A hard money lender has a vested interest along with a skillset that can be shared with you to help you succeed in property investing.
GL&L Holdings is a hard money lender who can help build your real estate investment portfolio. With a background in fix and flip projects and other property investments, we provide lending, resources and guidance in real estate. Contact us at GL&L Holdings today. (832) 770-9415 or visit our website: www.gllholdings.com