PAYING OFF YOUR HARD MONEY LOAN

Utilize Proceeds From Selling The Property

This is a favored strategy for those who fix and flip homes. The hard money loan gives investors an opportunity to purchase properties very quickly and after making improvements, the investor sells the property for considerably more than what they paid for it, enabling them to make a profit and pay off the loan. It will take good planning and developed skills of investment for this to work as well as finding a buyer with the right potential during the hard money loan period.

Go To A Different Loan

When you are not looking for a fast sale, a standard conventional mortgage may be a better option – the downside is the approval process takes far longer to complete – whereas a hard money loan can help an investor buy a property very quickly, allowing them the time to think about further options before moving forward.

Use Cash From A Different Source

You can pay off the loan by using cash from another source. It has to be said this is often the option of last resort when plans did not pan out as expected and it can calso cause disruption in the investors other business operations. Nonetheless, it can give the investor time to get a return on the property. Exit strategies are vital for any kind of loan and hard money loans are no exception to this.