If you have a property that’s draining your cash, look into a hard money loan that can help you finish the project and get it off your plate.
A lot of clients reach out to us who have started a project – a flip, a rental, etc. – and are struggling to reach the finish line.
Delays in the real estate world can quickly cost thousands of dollars, so how can you avoid those issues with a hard money loan?
The Problem With Stalled Projects
Stalled projects cost money in a few different ways.
You have taxes, insurance, and loan payments for as long as you are in charge of that property. The longer you hold onto the property, the longer those payments are coming out of your pocket.
2. Missing the Market:
Real estate markets move fast. Although a delay of a month or two can feel small, missing the market often makes it difficult to sell the property.
The most common way around this is to lower the asking price by a few percentage points… which is then more money that you’re not making in that deal.
Why Should You Get a Loan to Finish a Project?
Let’s look at some real numbers you might encounter if you were struggling with a stalled project:
For even a two month delay, a project can easily cost $5,700 in payments alone.
Let’s consider the fact that this investor also likely missed the peak market. If they were hoping to sell this property for $400,000, then decreasing the asking price by 5% would immediately result in a $20,000 market loss.
That is both discouraging and super costly… but it’s also avoidable with the right kind of loan.
How Does Hard Money Help?
If your project is 60-70% complete and you just need a loan to help you cross the finish line, hard money loans might be right for you.
These loans are flexible. Because you’re not looking to pay off the full amount, only cover the last leg of the project, it’s typically easy to work out a deal with a lender.
A Finish a Project loan does not take over everything. It doesn’t refinance the project. They’re designed to help you complete what you’ve started as quickly as possible. That way you don’t miss out on the market or get stuck with months of additional payments.
Looking for a Finish a Project Loan?
We’re more than happy to discuss your options and help you find the right path towards your success.