When most people think about reaching out to private money lenders, they usually want to get this type of loan to upgrade an existing property and then sell it for a profit. While hard money loans are most commonly used for fix & flip projects, this isn’t the only option.
Hard money loans are extremely versatile and can also be used for new construction. This is even more relevant for single-family or multifamily use properties that you plan to build and then sell for a profit.
If this is what you plan to do, but aren’t sure how it works, here are a few things that you should keep in mind on how hard money loans can be used for both multifamily residential properties and commercial projects.
Consider the location
The location is one of the most important factors when it comes to hard money loans for new construction. Most hard money lenders want a new construction project to be located close to their location so they can physically visit the site when needed. Insula Capital Group is one of the few private money lending firms that offers its services across the US. As long as you submit a solid plan for a new construction project, we’re here to assist you with the funding.
Learn about the process
Many hard money lenders are likely to help you through each step and guide you regarding the paperwork needed. However, it’s a good idea to do your own research and learn about the process so that you have a better idea about the contract.
It can also help you understand the rules of hard money lending, especially with regard to loans for new construction.
Loan structuring is another important concern when it comes to financing your new construction project. Most traditional lenders have rigid restrictions when it comes to financing terms. Hard money lenders are generally more likely to tailor terms depending on your needs.
Since you’re working with a loan officer on a personal basis, they may even be able to tweak the terms depending on your needs. For instance, the lender can provide more flexible collateral release and flexible loan repayment terms. Additionally, they can work out different repayment schedules to meet the borrower’s needs. At Insula Capital Group, we also offer no penalties for early pre-payment.
Are you looking for private money loans in the United States? Find top-rated financing solutions at Insula Capital Group. We offer attractive loan programs for single-family homes, multifamily buildings, fix & flip properties, and new construction projects.
We’re dedicated to helping business owners and real estate investors get access to low-cost capital at competitive rates nationwide. Enjoy seamless loan approvals with minimal documentation and no prepaid penalties. Reach out to us today with information about your hard money real estate loan, and we’d be happy to help.