Purchasing undeveloped property can be a great investment, and collateral loans can help you purchase this great asset. However, you may wonder why it would be beneficial to buy property, or why use hard money loans instead of traditional commercial loans for land.
Why Purchase Land?
So, why purchase land? There are many reasons undeveloped property is a valuable asset to you or your business. For one, you can buy the land at a reasonable rate and then, when the time comes, sell the land for a profit. In the meantime, you can rent the land out for a variety of things. This way, the property can generate income until you are ready to sell it for higher than what you originally purchased it for. For example, you can rent the land to local farmers for livestock grazing. Another option would be renting the space for events.
In addition, you could buy land that you plan to develop at a later date. Perhaps you found the perfect location for your new office building. The first step in moving to that location is to buy the property. You can then build your office building, facility, or apartment complex. For these reasons, purchasing land is a great investment, whether you build on it or not.
Why use Hard Money Loans?
However, where do collateral loans come into play? If you have been denied loans in the past, a private money lender may be able to help you. Bad credit doesn’t mean you have to give up your idea of purchasing property. Instead, collateral loans can be customized to suit your needs so that you don’t have to lose out on opportunities based on your credit score.
Another great benefit of using hard money loans is that they are typically much faster than traditional loans. This way, you don’t have to worry about your dream property being sold to someone else while you are still working with a bank. Once you find the land you want to purchase, it will likely only take days, rather than weeks or months, to close the loan so that you can bid on the property you choose.
In all, collateral loans are a great way to purchase undeveloped land, no matter what you intend to use it for. At Texas Funding, we are an established private money lender with over 35 years of experience with Houston real estate. Call our team today at (713) 932-6600 to discuss your needs and we work with you to find an ideal solution. We look forward to the opportunity to serve you.