Real estate investors often turn to hard money loans for their quick approval, flexibility, and capability to finance properties that need repairs. These loans are usually short-term, offer the advantage of leveraging capital, and generally don’t have prepayment penalties. However, they come with higher interest rates and fees compared to traditional loans.
For investment properties, the usual closing period is 5-10 business days. However, Preferred Capital Associates stands out for its efficiency, often completing closings to repeat customers in several days.
Hard money loans are ideal for fast financing as they focus on property value, enabling quick approval. While they typically have higher interest rates, they are a popular choice for short-term real estate investments, particularly for renovating distressed properties. In comparison, traditional mortgages can be difficult to obtain for these types of properties due to their stricter requirements and longer approval times.
