There are many misconceptions in the marketplace about the meaning of the term “hard money loans”. In the real estate industry, funding from a hard money lender is so-called hard money lending because of the high points and interest rates. While the conventional mortgage loan from banks floats around 3%, a hard money loan can stand at around 12% APR.
Although the loan terms can be strict and the interest rates can be high, a hard money loan is usually worth the cost for the average real estate entrepreneur needing a quick source of cash to fund their deals. While conventional loans can take weeks, if not months, to close a loan, hard money lenders only need 7 days or less. Income and employment verifications, credit checks, background checks and all the qualification parameters that are present in conventional loan processing, are not required for a hard money loan, which makes the process not only faster but easier for the investor as well.
As a way of example, let’s say you have $150,000 to invest and you want to buy a single-family detached home for $130,000 that needs $20,000 worth of rehab. You would have just enough cash to do the deal, but you will not have enough cash for other deals until you have accumulated enough capital. On the other hand, if you qualify for a loan with BridgeWell, you would only need to fund as little as 10% of the total project cost, which includes purchase price, closing costs and rehab costs. You could then use the other portion of your investment capital to fund other deals and multiply your profits.
Therefore, hard money loans allow real estate investors to quickly fund their deals, do more business and boost their profits. If you would like to know more about our programs click here or submit a funding application.
In the real estate financing industry, private money refers to the funds an individual or organization invests with a real estate entrepreneur in exchange for a return on the investment. While a private money loan can take place when friends and family lend you money for your start-up business, it most commonly originates from a financial institution like BridgeWell Capital. BridgeWell Capital uses the money of private investors to service loans to real estate entrepreneurs. In this case, the financial institution receives a promissory note —a mortgage on the property to secure the investment— and collects an interest on the loan. The real estate investor can make interest-only or amortized monthly payments over 5 years with unlimited options to renew —whichever works best for the deal.
You may be wondering why a private money loan from Bridgewell Capital makes sense for your business. The primary benefit of private money is that it allows you to do more deals. Many novice real estate investors struggle with other sources of money such as conventional mortgages and lines of credit. They may close a few deals but they eventually realize how easy it would be if they had used private money in the first place.
For experienced investors, private money is useful to close larger deals. A solid real estate investing experience, a highly appraised property as collateral along with a high estimated profit margin are important factors for BridgeWell Capital to fund larger deals.
In today’s real estate market, private money is key. There has never been a better time and a better way to boost your investments than with private money. It doesn’t matter what strategy you use for your investments; whether you want to buy, fix and sell or buy, fix and rent single-family houses, using a private money loan from BridgeWell is a huge investment opportunity to propel your investing to the next level.
Are you a first-time investor looking for a hard money lender?
Entering the fix and flip space as a first-time investor can be tricky. Many hard money lenders require previous experience. This can be very frustrating when you’re starting from square one. Additionally, the experience requirement is often limited to recent experience. Investors who have flipped or owned rental properties in the past are excluded from using this experience to qualify if it was not recent. Both first-time investors and investors with long-past experience suffer from a lack of financing options.
Enter BridgeWell Capital!
We are a fully licensed and insured mortgage bank with financing solutions for every type of investor. BridgeWell has been in business for over 14 years and is the best hard money lender for first-time investors.
10 Reasons Why BridgeWell Capital is the Best Hard Money Lender for First-Time Investors
(1) Track record.
BridgeWell Capital has been in business since 2008 and has a proven track record of success. Conversely, many of our competitors have opened recently as hard money lending has increased in popularity.
(2) Experience in the Real Estate Industry.
The team of professionals working at BridgeWell Capital is well-versed in the fix-and-flip industry and has a combined 50 years of experience in real estate. In contrast, other hard money lenders have experience in the ‘fintech’ industry but little to no experience in the business of flipping.
Side note: Fintech means financial technology and is used to describe new tech that seeks to improve and automate the delivery and use of financial services. It is used in this context to refer to apps and websites that automate loan origination but do not provide guidance in the real estate industry.
(3) Personalized Service.
BridgeWell Capital is perfectly designed to guide first-time investors through their first deal. Every customer has an assigned Account Executive who works closely with Processing and Closing to get a deal done. When you call BridgeWell Capital you are never routed to an answering service or call center.
(4) Coaching.
At BridgeWell Capital, we provide the highest level of coaching and attention to first-time investors. Our staff is well-versed in a range of topics including wholesaling, damaged credit and how to improve it, best practices for finding a general contractor and ways to maximize your potential profitability. Advice on these topics and many others are available to first-time investors who reach out to our team of experienced professionals.
(5) Cash to Get Started.
BridgeWell Capital is the best hard money lender for first-time investors because we provide a portion of your rehab budget upfront! Almost all other hard money lenders expect you to get started on your rehab with cash out-of-pocket. Once a portion of the work is complete, then they will reimburse you. This method is tough to execute. Often a large portion of your liquid cash will be used for the down payment on the purchase of the property and associated closing costs and escrows. At BridgeWell Capital, we will provide you with 20% of your total rehab budget to get started on your project.
(6) Rehab Budget Review.
As a first-time investor, you want to make sure you have all the bases covered. How do you know if you have enough money budgeted for your project? BridgeWell Capital has a Repair Credit Line (RCL) specialist to help with this conundrum. First, we order a building inspection. Then, we review the results of the building inspection against your provided rehab budget. If the Repair Credit Line (RCL) specialist notices a missing item, we will request that you alter your budget to cover it.
For example, the building inspection identifies that the HVAC is past its useful life. The RCL specialist reviews the provided Repair Credit Line budget and does not see any money budgeted for a new HVAC. The RCL specialist will then request that you increase your budget to cover the cost of a new HVAC. Without this review, it’s possible the HVAC would not have been budgeted or replaced. When you try to sell the property, the end-user will certainly require a new HVAC to comply with conventional lending standards. This is a costly mistake and could have been easily avoided with our expert review and guidance.
(7) Speed of Closing.
With rents continuing to climb and interest rates remaining low — but trending upward — first-time investors will want to strike while the iron is hot. BridgeWell Capital’s bridge loans can close in less than 30 days and often in as little as 15 days. Speed is important, especially in a rising interest rate environment. You don’t want to miss out on the opportunity to get a great deal simply because your lender cannot close in a timely fashion. At BridgeWell Capital, we always put the needs of our investors first and can make accommodations to speed along closing.
(8) Direct Lender.
BridgeWell Capital is a direct lender. We deploy our in-house, private capital. Almost all other hard money lenders originate loans and then sell them soon after. We keep our bridge loans in our portfolio. The best hard money lender for first-time investors is one who will be available even after the loan has closed. BridgeWell Capital is available to answer all questions post-closing, during the rehab portion of your loan and through the successful sale of your property.
(9) Assistance Refinancing.
Let’s say you set out to fix and flip but you change your mind. You have decided to hold the asset as a rental – now what? BridgeWell Capital can help you with that! We have a refinance program available for properties that have been fully rehabbed and are now rental-ready.
(10) Win-win transactions.
The final and most important reason BridgeWell Capital is the best hard money lender for first-time investors is our standard of ethics. We operate with the highest calibre of fair dealings and will only pursue a transaction if it is a ‘win-win’ for all parties. Our team of experienced professionals reviews every deal for ‘Benefit to the Borrower’. Even if a loan looks good from our perspective, if we cannot determine any monetary benefit to the investor, we will not continue with the loan. It’s important to know the lender you choose to partner with has your best interest at heart.
So there you have it – 10 Reasons Why BridgeWell Capital is the Best Hard Money Lender for First-Time Investors! We’d love to hear your thoughts or speak with you about your specific situation. Please reach out to us at 866-667-7800!
