Real Estate Investors
Real estate investors are involved in multiple markets where they are not expected to remain in the property. Typically, examples include people who buy properties to repair and resell, or landlords renting to individuals or families. Whatever the case, the real estate investor sees the potential for sale or rent on a property and needs a way to finance purchase and repair costs.
Investment Opportunities
As the job title suggests, real estate investors rely on making a return on the deal. An experienced investor will recognize market potential and understand the risk versus reward. A short term loan will allow the agent to capitalize on investments where there is a narrow window of opportunity to make a profit. There is always a level of risk involved for real estate investors. However, an experienced agent will evaluate current market conditions and take a number of other factors into consideration before taking out a short term loan.
Experienced Resellers
The potential for properties to sell or rent is not the only consideration for real estate investors. Knowing the buyer has the experience and drive to close the sale is also important. Taking a short term loan, even at a higher interest rate, is worth the risk, when the agent is confident there will be a profitable return on the investment. Real estate investors are best positioned to evaluate the likelihood of a loan bearing fruit, so understanding buyer behaviors and market trends are all part and parcel of the job.
Fast Returns
Another reason that real estate investors often prefer to use short term loans is that they expect a fast return on the investment. These agents are not known for wasting time when it comes to carrying out repairs and closing on a sale. There is an urgency to list the property to market, which results in a win-win situation for all parties involved. If a short term loan is what it takes to get the deal done, it is in the best interests of real estate investors to finance the purchase of a property before someone else takes advantage of the opportunity.
If you are a real estate investor looking for a short term loan to meet your immediate needs, reach out to the experts from Red Door Funding. We can provide you with further advice on loan options that are tailored to the market opportunities currently available to you.