How to Get Out of Your Hard Money Loan Now
Do you know how to get out of your hard money loan?
Because if you’re a real estate investor and like to buy value-add properties FAST, then these are the types of loans you likely rely on. And if you work with wholesalers (who have tight, strict deadlines), then you most definitely need to use hard money to close your real estate deals.
But that doesn’t mean you want to get trapped in a hard money loan. Nobody wants that! Even as a hard money lender, we don’t want you to get stuck with high interest rates for months and months.
That’s why it’s important to know you have options. Hundreds of them!
Yes, you heard that. YOU have options, even if you don’t have:
- Tax returns
- A business partner
- Or a company name
So, as a real estate investor, why do you need hard money?
Well, as we mentioned above, it’s great for buying discounted, value-add properties, and then renovating and renting them. It’s also great for taking advantage of the free equity you get from discounted or wholesale properties.
But what can you do when you’re in a hard money loan and you’re ready to get out (meaning, you’ve already renovated and rented the property)? But you can’t get a traditional/conforming loan because you don’t qualify for a bank’s strict requirements?
The bigger question: How can you stop your hard money loan from eating up all of your positive cash flow? What can you do to stop giving your lender all of your profits, rather than yourself?
Well, here’s the thing. Both banks and lenders don’t like to tell you that you have OPTIONS.
Just because you haven’t been self-employed for more than 2 years, or you don’t have tax returns to show (or you don’t want to use them), you can refinance into a more affordable loan. And with that new loan, you can:
- Keep it away from your credit score (because the more loans you have, the more it impacts your credit score).
- Put it under your LLC’s name.
- Have unlimited projects.
To find that affordable, flexible loan, all you really need are 2 things:
- A good credit score (if you need boosting tips, check out these videos on our YouTube Channel).
- A lease that will cover the rental payment.
Trust us when we say, you don’t need to get stuck in a hard money loan. Every real estate investor has options.
If you’d like to discuss your options, our team is ready to help!