Applying for a loan and getting it approved on the brink of time for your business to launch is a tiresome process. Not to mention it is exhaustingly long and intimidating when someone specifically scrutinizes your credit score more than once.
Especially when you are trying to receive credit as soon as possible, getting impatient to open your fix and flip business, don’t we all wish that there was a simpler way to get a loan approved? An easier way to officially receive the credit?
You won’t receive the solution for a quick loan for your real estate business while looking through traditional banking. For that, you have to branch out to other non-traditional loan providers.
This is where fix and flip bridges and hard money loans come into play. Let’s talk more about what they are and what they can do for you:
Real estate is one of the most lucrative businesses out there. In May 2023 itself, there were more than 1,473,277 homes for sale in the United States alone. In Texas itself, the number of homes sold in May this year was 35,110.
Needless to say, Texas is a gold mine for real estate business owners. Therefore, if they can find the right property and the right quick loan, you should be able to make a skyrocketing profit. Thanks to Housemax fix and flip loans, that dream is now being made possible.
A quick fix and flip loan is also known as a bridge loan.
· The duration of the loan is three weeks to 3 years.
· Since the profit rate of these fix and flip loans are high, the interest is also high.
· The fix-and-flip loan provider is more like an investor to the business, and the ROI amount will be based on the profit you make.
· No Fix and Flip loan provider will be asking for any credit history.
Texas fix and flip loans sometimes sound too good to be true for many investors. This is why they want to avail themselves of these loans after judging all the pros and cons. In order to help these investors, we have tried to debunk a few Texas fix and flip loan myths with the facts.
The fact that Fix and Flip loan providers are not scrutinizing your previous credit history is giving the concept a bad reputation. It is not necessary for you to seek their help only when you have a few blocked credit cards and late bill payments.
Even someone with an immaculate credit score can face problems in a traditional loan system. Starting with the time it takes to sanction the loan and the concept of a mortgage. Sometimes banks cancel loan requests because the candidate doesn’t have a good income. Or they do not have the ‘right’ mortgage for the loan.
True, hard money lenders do provide businesses with high-profit potential. That is why these quick loans are getting so famous among real estate investors. However, it is not always a shorter loan.
Do not think that taking a fix and flip loan automatically means you have to pay it within a year (with full interest). When we say short term, we mean a quick loan as such won’t elongate to a decade of EMI.
However, they can stretch up to three years. Plus, there is an option of paying the loan amount all at once or with monthly EMI format.
The higher interest rates and fees associated with hard loans reflect the increased risk undertaken by lenders. Private lenders often lend to borrowers who may not qualify for traditional financing, and they need to compensate for that risk. However, hard loans also offer benefits such as faster approval processes, more flexible terms, and the ability to finance non-standard properties or projects.
Ultimately, the cost-effectiveness of a loan depends on the individual's specific circumstances and needs. While hard loans may come with higher expenses, they can provide access to financing that might otherwise be unavailable, making them a valuable tool for certain borrowers.