Looking For a Hard Money Line of Credit?
As a real estate investor, you must have capital at your disposal, or you will be unable to acquire the best properties to add to your investment portfolio. Although you have plenty of options available, we want to help you understand the benefits of getting an acquisition line of credit for your investment endeavors.
Investors Need Multiple Capital Sources at Their Disposal
Whether you are new to property investment or an old pro, you undoubtedly are aware of the importance of having multiple sources of capital at the ready, including hard money loans. Some investors consider a cash-out refinance loan to acquire this necessary funding and execute deals, while others consider a private money business line of credit to achieve their goals. The following are some of the traditional sources of capital investors use.
- Conventional mortgage loans
- Private funds
- Self-directed IRA funds
- Owner financing
- Business loans
- Home equity lines of credit
For residential real estate investors to succeed, you need plenty of capital available at all times. Having access to multiple types of capital, including an acquisition line of credit, will increase your ability to pay any upfront fees, cover an outstanding loan balance, and finalize acquisition deals.
What Is a Line of Credit?
Most people have heard this term, but many investors do not realize it is a viable option for assured capital. You can use credit lines to purchase properties or fix and flip them, depending on your needs.
In the past, when a real estate investor wanted to open a line of credit, their approval or denial was based on the equity in the properties they owned. For some real estate investors, this is problematic.
Today, acquisition lines of credit are based on your financial adequacy. According to your proven track record, you can often be approved for lines of credit that will help maximize your options for growing your property investment business.
EXAMPLE LOAN SCENARIOS
What Are the Benefits of a Real Estate Line of Credit?
Before you decide on this type of funding source, you should learn as much as possible. We like to help people learn everything they need to know about their options to make the best financial decisions.
In today’s property investment market, you must act quickly, or others will scoop up properties before you can raise your capital. The following are just a few of the benefits you will experience with a real estate investment line of credit. Consider the following:
- A reliable funding source is essential for real estate investing. With lines of credit, you can eliminate uncertainty and prepare for investing.
- Credit lines will enable you to know exactly how much you can borrow. You will be able to make more pragmatic decisions by having this funding option available.
- Getting this type of financing will allow you to snap up properties right away, without hesitation.
- Another benefit is that it helps you close on properties much faster.
- One of the most significant benefits you will notice is business scalability. As you continue to pay down your line down, you will be given access to further options that help you continue to grow your business.
Taking Advantage of Unique Funding Solutions
Our company is committed to finding unique funding solutions for residential real estate investors. Obtaining this type of financing is a straightforward process.
In most cases, you will see the following benefits when you seek a line of credit. Get started right away to talk about your specific options and what is available.
- No income verification needed
- No financial documents required
- No collateral required
- Flexible interest rate options
Other benefits of this type of funding include the following.
Beginner-Friendly Terms for a Real Estate Investor
A hard money business line of credit is ideal for beginners and seasoned investors. You can use these funds for investment property acquisition and rehab and renovation costs.
No Prepayment Penalties on Private Money Loans
You will also benefit from no prepayment penalties or early exit fees in most cases. You will find the transaction costs are much lower.
Quick Closing Time on Real Estate Loans
Most people close in roughly three weeks, though this time can vary during the underwriting process. Best of all, you can draw from your line of credit multiple times. All you need to do is provide an executed purchase contract, and you can close on the payment in seven to ten days, which is a major advantage in a fast-paced market.
If you are a seasoned investor, you probably understand that capital is more likely to dry up than opportunity. With so many tremendous investment opportunities available, you must have business capital available to close on a property at a moment’s notice.
Zero Credit Reporting
In most cases, you will find that an acquisition line of credit does not report to your personal credit report, so you won’t have to worry about impacting future financing transactions or meeting rigid credit approval requirements. A major advantage of this type of financing is that you should have no trouble getting a mortgage.
MORE EXAMPLE LOAN SCENARIOS
How to Secure a Real Estate Line of Credit
Knowing how to qualify for a real estate line of credit is essential for investors and their business. The following are a few tips that will help you secure your financing and begin experiencing the benefits right away.
Choosing the Right Loan Type
Choose the best loan type for your needs. There are multiple types available, including a home equity line, real estate lines, acquisition line, and real estate business credit lines. From first mortgage loans to investors seeking loans for multiple properties, we can help you make the perfect business choice to get started.
Complete an application. The process is as easy as possible to relieve your stress.
Your application will be reviewed once submitted, and you may be asked to submit further documentation if needed.
Once your line of credit has been approved, you will receive an official approval letter within thirty days. Once approved, you can generally begin drawing from your credit lines within ten days.
Is a Lack of Capital Preventing You From Reaching Your Real Estate Investment Strategy?
One of the biggest obstacles an investor faces is a lack of capital. A lack of funds will quickly kill your investment and business objectives. Don’t let a lack of capital options stop you from investing in properties!
Get started right away for approval on real estate lines of credit. We are dedicated to bringing you the best hard money lending products and helping your business succeed by giving you financial options tailored to your unique needs.