How a Buy and Hold Hard Money Loan Works
Unlike traditional loans for real estate investment, a Buy and Hold hard money loan is focused on the actual value of the property or assets at hand rather than the details of the person taking out the loan. Whereas most traditional real estate loan programs are intended for primary residences that are currently occupied by the owner, Buy and Hold loans can be approved for secondary properties that may or may not be immediately occupied. Another great advantage of this type of Hard Money loan is that having a great credit score is not at all a requirement since the property value itself is essentially held as collateral.
Buy and Hold loans can be used for properties listed for sale, rehabilitation projects, multi-family buildings, single family units, investment rentals, condos, secondary homes, fix and holds, short sales and more. They can also be used for commercial and industrial properties in addition to residential ones. When people enter a Buy and Hold agreement, it is because they are looking to make money off of the property over a potentially long period of time– as opposed to standard Fix and Flip loans where investors are hoping to fix the property up fast and then sell it as quickly as possible. While Buy and Hold loans are still short term hard money loan agreements, they can often be for longer term periods than other types of hard money loans.
Our experienced loan staff has been offering Buy and Hold hard money loans for more than 15 years, and we also do not limit how many properties our clients can purchase with their loans. We may require a credit check during the simple application process, but a low credit score is okay. Our lending experts tend to approve Buy and Hold loans fast for Texas real estate investors, often with same-day approval in order to get you the funds you need in just a matter of days. When you’re ready to explore this option (or if you’ve already decided to apply), don’t hesitate to contact us to get started.