Washington DC Hard Money Loans For Fix & Flip Projects

Washington DC Hard Money Loans For Fix & Flip Projects

The fix and flip market in Washington DC has really opened up over the past few years. However, finding the right financing to carry through a project from purchase to renovation to sale can be a challenge. In order to make a profitable turnaround on a property, many local commercial real estate investors are using Washington DC hard money loans.

Washington DC Hard Money Loans Are Easy To Secure

Unlike traditional bank loans, Washington DC hard money loans can be arranged quickly and efficiently, to keep time-sensitive projects on track. The reason for the fast approval process is because the equity and collateral already exist. Washington DC hard money loans are structured around the property being renovated. Hard money loans also keep the local property market in mind, as well as the overall profitability of the post-renovation status, to ensure adequate working capital at every stage of the project.

Uses For Hard Money Loans

Hard money loans, also referred to as bridge loans, have a variety of uses. In broad terms, hard money loans are used to fill in any gaps in financing while larger funding is still being processed. In plain English, hard money loans are designed to cover immediate expenses. Washington DC commercial real estate investors use hard money loans for construction permits, lining up contractors, purchasing materials, and to create a buffer for any unexpected costs. Later on, after renovations are completed, funds from hard money loans can be used to help rent furniture and more to help stage a property for potential buyers.

Strategies For Hard Money Loans

Typically, hard money loans do not have prepayment penalties, which presents a clever strategy for property investors. Instead of dealing with debt from multiple loans after a fix and flip project, many property investors figure the amount needed for a hard money loan ahead of time, and roll it into the total amount of financing from the larger loan. This way, once the funds from the larger loan are disbursed, investors can use that capital to repay the hard money loan. This consolidates debt, and allows commercial real estate investors to move onto the next project instead of juggling debt.

Learn More About Washington DC Hard Money Loans

Source Commercial Funding handles financing for real estate projects of all shapes and sizes. If you have a fix and flip project in your sights, and need a reliable source of capital, contact our offices today.

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