Investing in real estate can be exciting and lucrative. Often the profit from just a few investments will be enough to finance future projects. Before investments generate a profit, investment buyers often need to borrow funds to finance the start of their real estate ventures. It helps to know the types of lending available.
Most who need real estate financing look to banks for a loan. Banks will offer traditional loans, but tend to be cautious about their lending. Banks value a borrower’s ability to repay the loan and will look at credit scores, debt to income ratio, and could take weeks to process. Getting a traditional loan is a great way to go unless a borrower has poor credit history or needs capital quickly. Often in real estate, a seller who may have multiple offers will accept the offer that will close the soonest. Waiting weeks for a traditional loan to process can cost a buyer the property deal.
Hard Money Loans
Another option for a real estate buyer is hard money. Hard money lenders are individuals or investors who care more about the value of the property in question. Individuals who lend hard money see the property as collateral and will take the property and resell it to recoup the loan if a borrower is unable to repay. Hard money loans are usually handled on an individual basis and have shorter terms, but will also have higher interest rates and fees. Visit website for more information.
Other options include Fix and Flip loans, construction loans, acquisition loans, bridge loans and FHA loans. The lending landscape is vast and can overwhelm even the most experienced real estate investment buyer. To secure their best interests in the sea of real estate financing, buyers will benefit by consulting Real Estate Lawyers Nassau County NY. No matter the type of loan a buyer chooses, attorneys experienced in real estate financing will work to help the buyer understand the lending terms of their loan and the tax consequences of acquisitions.
Attorneys will protect buyers rights and borrowing liability especially when a deal is brokered between individuals. Don’t make the costly mistake of leaving your assets and liability unprotected. Visit The Law Offices of Peter Morra in Nassau County NY to secure the best Real Estate Lawyers Nassau County NY on your side.