Idaho is one of several states that Actium Partners is currently active in. We see plenty of lucrative opportunities in the Gem State, particularly where real estate investments are concerned. Chances are we are not alone. Both new and seasoned investors alike are taking a good look at Idaho. Some of them are coming to us for Idaho hard money loans.
If you are a new investor who isn’t exactly sure about hard money loans, allow us the opportunity to put your mind at ease. Hard money and bridge loans are two of the best funding tools for commercial real estate transactions. Hard money is fast, competitive, and easier to get than most forms of traditional financing.
Having said that, new investors should not jump in without discretion. There are plenty of things to think about, including the following:
1. Individual Real Estate Strategy
There is plenty of money to be made in real estate. The beauty of real estate investing is that there isn’t just one way to do it. There are plenty of options, including the immensely popular strategy of buying properties and holding them as a landlord. The thing to understand is that your real estate strategy may affect your ability to find a hard money lender.
Using ourselves as an example, there are certain types of real estate projects we will not fund. Fix and flip products and properties with less than 4 units are among them. We also don’t make loans on owner-occupied properties. It’s important that you figure out your real estate strategy before you begin looking for lenders. It could make a difference.
2. Do Idaho Hard Money Loans Make Sense For Your Current Financial Situation?
Making money in real estate without spending a dime of your own is a myth. Every hard money lender requires borrowers to make significant down payments. There is no way around it. As a new investor, consider your own financial situation. Do you have the financial resources to acquire your first few properties? The better your cash position, the more opportunity you will have to obtain lucrative properties through hard money loans.
3. The Current Market
Idaho’s real estate market is no different than the market anywhere else. It has its ups and downs. The state has enjoyed a sustained period of growth over the last several years. But by the time you read this post, things could be different.
The state of the market plays a vital role in profit margins. Know the market intimately before you think about borrowing. Why? Because lenders will not want you to pay too much for a property that might not generate a healthy return. It might be harder to get funding if the market isn’t favorable to your investment strategy.
4. Rates and Terms
Before you start inquiring with lenders, spend some time thinking about hard money rates and terms. Hard money loans are short-term loans of usually two years or less. Interest rates are higher than traditional financing as well. However, you get a lot in return.
Just be prepared for rates and terms that do not look anything like what you would get from a traditional lender. But also understand that utilizing hard money loans with a sound investment strategy should ultimately be better for you in the long run. Hard money is more competitive than many people think, especially when compared against long-term traditional financing over the lifetime of amassing a real estate portfolio.
Actium Partners is thrilled to offer hard money and bridge loans in Idaho. Whether you are a seasoned investor or just getting started, we might be able to help you build the multi-family property portfolio you’ve been dreaming of. Let’s get together and talk about it.
