3 Ways Hard Money Increases ROI in Property Investing

Success in property investing is all about ROI. The more Return On Investment, the more leverage you gain to grow your real estate portfolio and profitability.

With every opportunity, investors are looking for ways to gain ROI. This is why the hard money lending industry has become a premier option for achieving real estate dreams.

Hard money loans are designed to finance investment properties with the loan’s primary focus on the property’s profitability. By using a hard money loan for house flipping or home rehabs, an investor gains opportunity to increase ROI.

3 Ways Investors Gain ROI with a Hard Money Loan

  1. Leverage Capability.

The most successful property investors use hard money loans to leverage funds and do multiple fix and flip projects at a time. It’s more efficient and cost effective to flip houses at the same time versus individually. Typically, a hard money loan allows you to rehab four houses for every one you could do with cash.

  1. Access to Capital.

The highest ROI typically comes with the most competitive house on the market. It’s the investment opportunity every investor wants, and no investor wants to lose because funds weren’t available.

With hard money lending, you have access to capital when the best deals pop up, such as a wholesale deal. A hard money lender understands the importance of moving quickly, having capital available and being open to properties in disrepair (often a great opportunity for a high ROI).

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  1. Insider Tips.

Hard money lenders are experienced and specialized in real estate investing. The inside tips, guidance and extra set of eyes they can provide on house flipping can easily increase your ROI. They can also provide industry connections and networking in real estate that can be extremely valuable and profitable, especially for those new to property investing.

The Expense of Choosing Cash Over Hard Money

A mistake new property investors make is choosing cash over hard money when first starting out. When you use your cash, you immediately limit the size of the project and your overall opportunity based on the amount of cash you have available.

Hard money opens the door to opportunity. Using hard money instead of cash allows you to invest in multiple projects at a time and increase your overall ROI, while still hanging on to your cash

Get preapproved for a hard money loan today, and you’ll be ready to act when opportunity arises.

Catalyst Funding is a hard money lender who can help build your real estate investment opportunities. With a background in fix and flip projects and other property investments, we can provide resources and guidance to help you through the entire process. We strive to be more than a lender! For more information, contact Catalyst Funding online or call us at (832) 648-3626.

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