Are There Different Types of Hard Money Loans in Washington DC?
Just as there are all sorts of types of real estate, there are several different kinds of hard money loans to consider. Here are some examples.
- Flip Loans are structured to provide money for purchasing and renovating properties for resale. These work great for someone who has the skills to rehabilitate the properties quickly and then sell them without any delay.
- Commercial loans make it possible to purchase business and commercial properties with an eye toward renovating and turning the property into a money maker. This could be by selling the commercial property for a profit or filling it with tenants who provide an ongoing income stream.
Cash out refinance loans make it possible to settle an existing mortgage and make use of the equity in the associated property. The debtor can use the money from the equity to make improvements to the property and prepare it for a quick sale or lease the property as a way of creating a revenue stream.
- Wholesale loans often involve a broker as the intermediary between the applicant and the lender. This approach allows the broker to bundle loans and leverage the transactions to allow the lender the chance to make the most profit possible.