Hard money loans are a great avenue for both commercial and residential property financing, as they’re able to offer several benefits that traditional lending can’t compete with, such as fast processing and easier qualification. Of course, before you can take advantage of these benefits, you have to decide which type of financing best fits your needs. We offer several types of hard money loans, each with its pros and cons. Here at Gauntlet Funding, we understand that no two borrowers are alike, which is why we offer several financing options to meet a range of needs.
Bridge loans are common in the real estate industry, as they’re short-term and quick to process. Traditional mortgages can take 45 days or more to complete, with reams of paperwork you have to file. Bridge loans can get you the necessary cash in days, allowing you to close on a good deal before someone else snaps it up.
The short time frame is especially helpful to investors who have other transactions in process and need a stop-gap between sales. Once your other properties sell, you can quickly pay off your bridge loan.
Fix and flip loans can be hard to come by in the traditional lending sector, but at Gauntlet Funding, we know a property can become so much more than its current value. This type of lending is specifically designed to provide investors with the necessary resources to repair distressed properties such as these:
• Foreclosed houses
• Short sales
With flexible capital from Gauntlet Funding, you can quickly restore a home and turn a profit.
If you’re seeking to enter into a partnership on a certain project, you should consider a joint venture loan. This type of financing allows you to share resources and responsibilities with a partnered entity, as agreed upon in a legal contract.
Joint venture financing is a good option for entities that are unable to get approved for private money loans on their own. You may also be able to get more favorable terms than if you were to apply alone.
If you’re looking to for a new building or renovate a home from scratch, you likely need new a construction loan. Hard money lenders such as Gauntlet Funding can offer several types of financing for this purpose:
• End loans
• Owner-builder construction
• Construction only
Your choice depends on whether you plan to inhabit the finished property or use it for commercial purposes.
Rental Are you interested in creating rental properti
Are you interested in creating rental properties? Then you may benefit from longer-term financing such as rental loans. Similar to fix and flip, this type of funding allows investors to rehabilitate a distressed property, the difference being intent to rent rather than sell. Like other options on this page, rental financing is asset-based, which means you can still get the quick processing necessary to get highly sought-after properties.