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Using Hard Money Loans to Diversify Your Investment Portfolio

Leverage the distinct advantages of hard money loans in New York to expand and diversify your investment portfolio. Know more at https://bit.ly/3j89lTK

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Using Hard Money Loans to Diversify Your Investment Portfolio

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  1. HARD MONEYLOANSTODIVERSIFY YOURINVESTMENTPORTFOLIO WWW.EXPRESSCAPITALFINANCING.COM

  2. HOWTOEXPAND YOURNEXTREAL ESTATEINVESTMENT USINGAHARDMONEY LOAN Real estate is generally deemed to be a safe investment in that therelative price volatility in this sector is typically less in comparison to the stock market. Historically, data indicatesthat property prices trend upwards when economic conditions areexpected. Major crises—including the current pandemic—or significant periodsof recession can prompt a temporary drop in prices. These downward trendscan offer a substantial opportunity for first- time home buyers and those looking to enter the real estate investmentspace.

  3. PRICINGFACTORS The general area and specific location are the determinative factors that influence whether a given property is considered hot or not. The targeted property type is also animportant aspect of residential, commercial, industrial, or undeveloped land. Additionalproperty characteristics to consider are connectivity (i.e., water/sewer, electricity, utilities, etc.), interest rates, economic conditions, andthe current demand and supply in the real estate marketplace. There are also multiple options available to aspiring real estate investorsin terms of how they want to go about managing their portfolios; whether that be assuming the role of landlord and enjoying thepassive revenue stream from rental income, investing in a real estate investment trust (REIT)or attempting to fix and flip, and sell aproperty.

  4. USINGHARDMONEY LOANSTODIVERSIFY YOURINVESTMENT PORTFOLIO No matter whether you go with theREIT, landlord, or property fix and flipping strategy, you can leverage the distinct advantagesof hard money loans in new yorkto expand and diversify your investment portfolio, which will subsequently enhance your bottomline. Hard money is essentially unconditional financing for getting your realestate transaction fully funded without having to go through the qualification process associated with traditional financing routes.These traditional loan procedures can takea significant amount of time—acommodity often in short supply for real estate investors looking to capitalize on last-minute property purchases at premium pricepoints.

  5. The eligibility consideration for hardmoney lenders is focused on the merits and potential profitabilityofthedealathandandnotthe borrower’s personal financial profile in the majority of situations. Investors should keep in mind the associated costs of obtaininga loan and how it will ultimately impact your return on investment. There are a fewfees associated with hard money loans to be aware of,including:

  6. Interest:Hard money loans are interest-onlyloans that usually range between 8-12% depending on the loan amount and the specifics of the transaction isfunded. Points: Lenders will usually charge points for availing the loan, with one point equating to 1%of the total loanamount. Extension Fees: These are charged ininstances where the duration of the loan is extended, however, when partnering with Express Capital Financing, you will receive a freeextension. Other Fees: These include costs related to inspections, processing, applications,etc.

  7. Real estate investors should shop around and compare multiple hard money lenders to find the right fit for them in termsof cost and the ability to tailor a loan package that corresponds with yourinvestment strategy.

  8. The vast majority of hard money lenders are willing to lend up to 70%, which is a loan to value (LTV) of after repair value (ARV) for propertyflipping projects. For other types of projects, loan to construction (LTC) packages can range from 80- 90%, which encompasses the acquisition expense and repair costs. This means that you can flipa property with minimal (10-15% of the project value) out-of-pocket expenses, which gives youample opportunity to take on multiple projects using hard moneyloansandvastlyexpandyourrealestate investment portfolio. The more projectsand properties you are drawing income from, the more your overall profit margin willincrease.

  9. EXPRESSCAPITALFINANCING 2625EAST14ST.SUITE209 BROOKLYN,NY,UNITEDSTATES 11235 INFO@EXPRESSCAPITALFINANCING.COM WWW.EXPRESSCAPITALFINANCING.COM WWW.EXPRESSCAPITALFINANCING.COM

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