So you landed a Hard Money Loan. Great! Chances are, you have recognized hard money loans as a quick way to invest in property. By eschewing normal hurdles to get a loan from a bank – lengthy approval process, background checks, etc .- you have opened yourself up to greater investments and further real estate.

 

Hard money loans sometimes have a reputation due to how easy it is to procure this higher-interest form of private loan, but in the right hands, these are incredible assets to building your portfolio. Read below for some new ways to use your hard money loan as an asset, especially in fortifying your real estate portfolio.

 

• Properties without Tenants

 

In the world of traditional loans, an investor is often unable to purchase a property until it is under a lease. For hard money loans, lenders do not require tenants as a stipulation of their loan. This can allow for a greater array of properties a borrower can invest in, and also free up opportunities for an easy property renovation. When looking for what properties to invest in, widening your search can allow for increased collateral and ultimate success in the real estate market.

 

• Re-Investing in Property

 

There are many ways that one may come into property. Whether through intentional investment or legal settlements or inheritance, property also comes with different levels of needed repairs. When it comes to repairing properties, banks may not lend money due to the state of the property. With hard money loans, lenders are not worried about the state of the property as they have another form of collateral, which provides them with accentuated security. The ease and availability of a hard money loan means that these repairs can be fulfilled as quickly as possible.

 

• All Cash Purchases

 

One of the benefits of hard money loans is that it frees up capital quickly to divert to wherever money is needed. When looking to invest in real estate, sellers often find all-cash offers incredibly attractive. In fast buyers markets, your hard money loan is an asset above other purchasers. This allows for greater accessibility to the properties you want while accruing property for investments.

 

• Grow Your Business

As business booms, so will the cost. Business purpose loans are common for starting and maintaining a successful business venture. However, small businesses especially may be faced with roadblocks such as procuring a traditional small business loan. With your hard money loan, you can free up cash flow and allocate it to the expenses you need to get your business off the ground. For this, it is important to get creative; whether you use it for new equipment inventory, renovations, or even professional development. These are ways you can invest and see the return on your investment for years to come. Using your hard money loan to grow your business is a great way to find a new use for that old loan.