Financing Your Next Rehab Project to Maximize Revenue
Any real estate entrepreneur will tell you that the business can be exciting, opportunistic and lucrative. For the hard-working, knowledgeable, savvy investor, activities such as house flipping and buying rental properties can turn out huge profits, even when the market is struggling. Working on rehab projects is a tried and true way for the real estate professional to make money. However, it’s important to get your start by obtaining reliable financing. Once you have the financial assistance you need, your business can take off. Before you start on rehab property, consider these ways to acquire a loan.
Small business loans aren’t reserved solely for the person who owns an actual company with employees. They can be used for the real estate entrepreneur, too, as you work on your rehab properties. There are many advantages to using SBA loans, not the least of which is the fact that are guaranteed by the U.S. government. These loans also come at reasonable rates and terms, and the amount you can finance can vary considerably, according to your needs. Whether you need $10,000 or a couple million, you can get the money you need with one of these loans.
Sometimes asking one investor for a large sum of money can be a daunting task, but crowdfunding makes it a little easier. With this method, you can find a crowdfunding site where several investors loan you bits of money rather than asking one lender for everything.
Family and Friends
While this might not be your first choice or thought, there are several advantages to asking for help from people you know. First, there’s a good chance a family member, friend or colleague will charge you little interest or perhaps nothing at all. You will also almost certainly have more favorable terms or more leniency when financing your rehab projects. Being in debt to people you know can be stressful and awkward, but as long as you know you’ll able to repay the loan without any difficulties, it could be a smooth transaction.
In the past, online lending may have had a negative view, but this is an excellent way to fund your rehab projects. Online lenders can approve your loan within days, and money could be in your account faster than with SBA loans or other traditional funding.
Get your real estate business off on the right foot by getting the loan you need. Soon, you’ll be off and running toward a satisfying career.