Hard money rental property loans, also known as bridge loans, are a powerful tool for investors looking to grow their portfolios. NV Capital Corporation is one of the most experienced brokers in Nevada regarding these rental investment products. We have a staff of seasoned commercial bankers who have nearly a century of combined real estate lending and are ready to help you finance your next investment.
Hard money rental property loans are often used by real estate investors because they:
- Are quick and convenient
- Require less collateral than traditional options
- Make it easy to flip or resell a property quickly
- What Are Hard Money Rental Property Loans?
Unlike traditional financial products, which are based on creditworthiness, hard money loans are offered by private money lenders based upon the ability of the unit or building to produce income. Known as “doc-lite” real estate vehicles, these rental investment options allow investors like you to spend less time on red tape and more time on your project.
Flip A House With Ease
Hard money rental property loans are prevalent among those using the BRRRR method of investment. BRRRR stands for “Buy, Rehab, Rent, Refinance, Repeat.” Investors interested in flipping houses or purchasing a multi-family property often employ this method as a reliable way to turn a profit. In addition, these loans don’t require much collateral other than the building or unit itself. Because of this, investors who finance using these products can easily and quickly add to their portfolio without eating up a lot of capital.
Renovations Can Be Included In The Loan
What’s more, private money lenders like NV Capital Corporation use what’s known as the After-Repair Value, or ARV, of the property to determine the loan amount. The ARV is the property’s estimated value once the buyer makes their planned renovations, upgrades, or additions. This allows you to finance part or all of the renovation cost as part of the property loan – leaving more money on the table for you to invest as you wish.
Hard Money Isn’t For Everyone
These financial products aren’t always the best fit for every investor. In some cases, down payments can vary. Hard money rental property loans also typically carry higher origination fees and closing costs than their traditional counterparts. Working with the right financial partner can help you make the most sensible investment decisions.
Learn More From Our Experts
There are many options for Nevada real estate loans, and it can be tricky to figure out which rental investment loan is right for you. So give us a call or fill out the contact form on our website to get in touch with one of our seasoned team members. NV Capital Corporation can help you determine what type of rental investment loan will help you achieve your long-term financial goals.