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Investing in real estate can be a lucrative opportunity for landlords who plan to buy/upgrade a property and rent it out for a steady incomestream. Usually, individuals buy distressed properties with rent potential and then fix it up so that it is habitable. Alternatively, landlords may choose to upgrade a property that they already own with new amenities and features to attract new tenants.

Regardless of what work you plan to carry out on the rental property, the right financing solution can make or break the investment. Instead of going through a bank, many landlords in Houston are opting for hard money loans to finance their rental property.

What are hard money loans?

Hard money loans are a type of short-term loan backed by some collateral, such as real estate assets, inventory, or receivables. Borrowers can get the loans they need within a short period of time and even when they have a poor credit history. In this form of investment, landlords often get secure rates quickly without parting with a large amount of cash upfront. Consequently, hard money lenders are able to provide better solutions for individuals who fix and rent or fix and flip properties.

Advantages of Hard Money Loans for Landlords

Hard money loans offer several advantages over bank loans for landlords looking to fix and rent properties:

  1. Speed and Convenience. If you find a distressed property on the market, chances are that the owner is willing to get rid of it quickly. Hard money loans give you access to funding quickly without having to fill in copious amounts of paperwork. That way, you can secure the real estate opportunity before it goes off the market.
  2. Property Collateral.Even if you’re an investor with a poor credit history, you can get access to hard money loans. This is because the lender will evaluate the property and not your credit history.
  3. Flexible Terms.Unlike banks that operate on strict risk and return models, there’s more flexibility in hard money loans. Users can talk to private lenders and work out the best solution that appeases both parties in the long run.

Are you looking for short-term private money loans in Houston? Find top-rated financing solutions for landlords at Allura Financial. We offerstress-free loan programs for single-family homes, multi-family buildings, and long-term rentals.

Learn more about our attractive loan programs or call (833) 896-6639 for more information.