4 Reasons Why You Should Consider Using A Hard Money Lender (For Borrowers In Fort Collins, CO)

Are you an investor in the Fort Collins area?  Then this is for you: here are 4 reasons why you should consider using a hard money lender.

Real estate investors know that investing can tie up your capital. For most investors in Fort Collins, that can create challenges when your capital is all tied up: How do you operate your business? How do you deal with unexpected expenses? How do you grow?

You may have some different options to fund the acquisition or repairs but many investors are turning to hard money loans to help them. Here are 4 reasons why you should consider using a hard money lender…

4 Reasons Why You Should Consider Using A Hard Money Lender

1. Save Your Own Capital

The top reason, which we’ve already hinted at, is that using your own money ties up your capital and prevents you from running and growing your business. A hard money loan uses someone else’s money, which keeps your capital liquid so you can spend it to grow. Some investors with newly freed-up capital realize that they can actually do more deals now.

2. Speed

Some investors just try to do it alone, using their own capital. When a repair comes up, they save up their money and when they have money they make the repair. But this can take a long time. It doesn’t make sense to delay generating a return on your deal; instead, borrow the money, make your repairs and generate a return on your deal sooner.

3. Leverage

As an investor, you’re probably familiar with the principle of leverage: getting a loan (such as a mortgage, or, in this case, a hard money loan) to pay for a large project, yet only needing to make small payments over time to pay the loan back. This makes it easier to take on large, costly projects without having to first save up the money.

4. Professional

Another way investors often fund their deals is through private lenders and investors who they know. However, if you do that long enough, you’ll learn that these private investors may require some extra hand-holding, or they might call you up in a panic in the middle of the night to get their money back because they need it quickly.

Bottom line, they’re nice people but they’re not professional investors. Hard money lenders are professionals who put their money to work and expect a return – they require paperwork and due diligence but they won’t be like those friend-and-family investors who fret night and day about their money.

Summary

Running your real estate investing business requires capital – capital to run the business, acquire properties, make repairs and so on. Most people need extra capital and are reluctant to tie up all their money in a deal, which is where hard money lenders come in. If you’re trying to figure out whether you should borrow money for your next deal, you’ve just read 4 reasons why you should consider using a hard money lender.

Need hard money for your real estate investment? We might be of help. Click here now and fill out the form or call our team at (970) 744-4944

 

Blake Stevens

About Blake Stevens

I grew up in Fort Collins, I lived in Loveland and I’ve worked and played sports all over Northern Colorado. I love our area, NoCo. Our company borrows money from private lenders so that they get a good return secured against a hard asset they can see and understand. We take a problem property off a sellers hands and get them the cash they want. We fix up the worst houses or even just average houses and make them the gem of the neighborhood, which improves our community one house at a time. We put trades people to work and stimulate the local economy. We partner with people looking to get a return on their capital in long term rentals providing quality housing while earning a good secure return. All around it’s a win, win, win business that I love.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

,

Comments are closed.