The coronavirus is causing unprecedented difficulty for small businesses. In a time forcing companies to close, there’s a dire need for contingency plans.
You might be wondering why hard money loans are lifesavers or what they can do for you in this situation.
Read on to find the answers that will help you in the long run.
What Is Hard Money?
Hard money describes a specific funding stream originating from a government agency or other organization.
Instead of a one-time grant, hard money schedules a series of payments.
Examples of hard money include daycare subsidies, annual scholarships to post-secondary students, or construction loans, or bridge loans.
Why Are Hard Money Loans Useful?
Hard money loans are useful in many situations. For example, real estate investors often use hard money loans when they want to invest in a property but don’t have enough capital.
In these situations, individuals can use a fix and flip loan, which is for the purchase and improvement of an investment property.
Real estate investors can also use construction loans if they are looking to buy a piece of property and build.
Where Can You Get a Hard Money Loan?
Banks do not offer hard money loans. Individuals and companies only provide them. Because banks do not offer them, the loan terms are flexible and decided between the borrower and lender.
Having flexibility is a critical factor in today’s unique financial circumstances.
With the coronavirus pandemic in full effect for the foreseeable future, the stock market and interest rates are in flux, You might not have time to wait on loan approval.
Hard money loans give you the capital you need fast.
Why Is Now a Good Time for a Hard Money Loan?
Due to COVID-19, the housing market is in a state of disarray.
Very few people are looking to sell their homes, and it has caused a lot of uncertainty. Eventually, however, the market will recover. And if you’re a real estate investor, you’ll want to capitalize on that.
Taking a construction loan or a fix and flip loan now prepares you for future recovery. It’s essential to keep investing, especially in a scary time such as this.
Bridge loans are short-term loans used until a person or company secures permanent financing or removes an existing obligation. These loans allow the borrower to meet current requirements by providing immediate cash flow.
These loans are boons to businesses who were excelling before the pandemic.
Restaurants, for example, are experiencing a lot of uncertainty. While Pick-up orders and delivery services are minimizing financial damages, most restaurants will need outside financial assistance to continue their intended business path.
Bridge loans offer a “bridge” during this challenging time, helping struggling companies or individuals with the financial assistance they need to endure.
Hard Money Loans Save Businesses and Keep Investors Investing
Using hard money loans as a contingency plan is an advisable strategy.
Small business owners and individuals may not have any other options. These loans offer relief in a time of uncertainty.
At PB Financial Group Corp, we have been providing quick funding since 2006 and have funded over 2000 hard money/private money loans helping our clients with valuable property acquisitions, development, bankruptcy discharges, probate resolutions, and so forth. For further information or to schedule a consultation, please contact PB Financial at 877.700.3707 or visit www.CalHardMoney.com to learn more.
PB Financial NMLS #357614/DRE #01522495