We all know the most important piece of real estate: location, location, location! This applies to the commercial real estate investment basics, too. Investing in an inexpensive piece of property may sound tempting, but it’ll do absolutely no good if it’s in an undesirable area. Always keep in mind that it should be in a place favourable to your ideal prospect.
Consider the notable features and demographics of the surrounding area, like reputable schools, a steady job market, proximity to public transportation, and general safety, just to name a few. These can be key items when exploring your commercial or residential property investing options.
Hard money loans for real estate investors do ensure a fast approval turn-around as well as quick funding for a short period of time. Typically, they take only seven to 14 days to process. This can be great for all investors with a clear idea of what needs to be done with a property and what realm of cost needs to be covered.
Even veteran investors should make sure that the overall cost of their property’s mortgage, taxes, insurance, and maintenance will be indemnified by the rent from tenants. If the numbers won’t work, walk away.
3. LOW RISK
Since most hard money loan terms from investment mortgage lenders last roughly one or two years, it is a canny decision to take on a property that will not require a large amount of your time. Sometimes, the more “boring” option can be to your advantage, as these ventures usually mean less work and worry for the investor. Acquiring too big a project can be disastrous for an investor, so remain pragmatic about the scope of risk you are willing to take.
Whether you want to attempt your first flip or you’re a seasoned investor, keeping these tips in mind will prove beneficial for your next endeavour in either commercial or residential real estate. If you’re in need of fast financing, contact Secured Investment Lending today for assistance with your hard money loan.