If you’ve wished you could invest in real estate and earn monthly rental income, a hard money loan may be just what you need. If a traditional lender turned you down or you’re worried you won’t get approved, we’ve got your back.
Traditional lenders don’t like to lend money for a property that you won’t live in. It’s risky for them because if you don’t have tenants, you may not be able to pay the mortgage. These lenders put a lot of restrictions on the loans, making them hard to get.
Hard money lenders don’t do that. We make it easy to get the funds you need to buy an investment property and make money. With our loans, you can buy an investment property, rent it out, and enjoy the extra income each month.
Here’s how a hard money loan can help you increase your monthly income.
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Leverage your Investment
Chances are you don’t have enough cash to buy a property, right? With a hard money loan, you can put some money down and borrow the rest to buy the property. Say for example you want to buy a $200,000 property and have $40,000 to invest.
You can borrow $160,000, giving you access to buy the $200,000 home, rent it out and make monthly rental income.
Credit Isn’t the Only Factor
Traditional loans look at your credit score first. If you don’t meet their high credit score requirements, you can’t get a loan.
It’s that simple.
With hard money loans, credit isn’t the only factor. It’s also not the first factor. We look at the property first. If there’s enough collateral in it and we believe you can afford the loan given the area’s market rent, you’ll be on your way to becoming a real estate investor.
You can Use the Rental Income to Pay the Loan
When you rent out a property, you should charge enough to cover the mortgage payment and make a profit. When you do your research and find a property where the average market rent is high enough for you to make a profit, you won’t even feel the mortgage payment.
Of course, it’s important to have reserves on hand just in case the home has a vacancy, but in general, your rent should cover your mortgage.
Final Thoughts
At Save Financial, we work with investors to help them buy their first or subsequent investment homes. Now is a great time to invest in real estate, especially as the stock market has been so unstable. Real estate values continue to increase, which means there’s an even greater return on your investment.
Hard money loans can be just what you need to either start your real estate investment portfolio or expand it. You’ll earn monthly income from the rent and be able to earn monthly cash flow plus the capital equity earned in the home.
