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“Fast Money” – The Speed of Hard Money Lending Helps Investors Bid for Properties in a Tight Housing Market

Hard money loans offer investors and renovators numerous perks even with the conditions of the current housing market. Right now, housing inventory is limited, propelling list prices to an unprecedented height. Homebuyers are even bidding up the price of rundown homes because of their drive to settle down leaving investors no room for profit. That could either mean an instant pause in business or the possibility for a brand new asset to add to your portfolio.

New Construction: Go Where the Profit Is

Buying land is a fantastic opportunity with far fewer shortages than the housing market is experiencing. New construction opportunities are ideal for professional builders looking to purchase a property or lot, build a dwelling on the lot, and sell or rent the property for a profit. 

The economy is working in favor of new construction even with the delays on lumber. Faster than ever families and young professionals are moving out of the city into the suburbs. They’re seeking an environment more suitable for remote working and a well-balanced lifestyle. Post-Covid work environments are less likely to require full-time in-person work, which means building new homes will serve people for years to come. 

Hard Money Lending Means Fast Money

While it’s true that wood and some materials have increased in price, there is still substantial room for profit in new construction than in a renovation. 

You’re worried about profitability, timeline, and budget, right? A hard money lender like Builders Trust Capital has principles on the team who have built homes from the ground up. The construction team vets the budget of your project before you even procure your loan. Fewer surprises mean you’re more likely to get your build done sooner which keeps you on budget and on time.  

In addition, you can avoid the cost of a bridge loan by getting the project “shovel ready”. Questions to ask to ensure your land is shovel ready:

  • Do I have all the permits and plans I need to begin construction?  For example:
    • Is it zoned for what I want to build?
    • Will the home legally fit on the plot of land I want to build?
  • Are the utilities like plumbing and electricity connected already?

More good news! With new construction, you won’t find any surprises behind a wall that doesn’t exist; the inherent risks that subsist with a fix and flip like finding mold or rot don’t impact your build. Your due diligence is almost entirely upfront. Working with a lender that can suggest a well-vetted contractor with good referrals who can get you the kind of numbers you need for your project is key. Getting your project shovel ready before you take out a loan including having your plans well-reviewed and budgeted can be less risky than a flip.

Furthermore, hard money lenders have an understanding of how builders run their businesses and therefore create guidelines that support that business model and budget. That deeper understanding often translates to a quicker underwriting process with less documentation.

Do More Deals With Builders Trust Capital Lender Serving NJ, PA, VA, DC, MD, and FL 

Builders Trust Capital has lent over $120M to builders and investors like you. We offer faster draws when you need money (in as little as 24 hours) – whereas some institutions could take several days or more. We don’t have you sitting with a bunch of accounts payable… let us partner with you on your next new construction project! Call us at 856-422-3232.

 

Builders Trust Capital Client Success Stories

Partner with an efficient, personable team who has delivered $120,000,000 in real estate loans

Builders Trust Capital Success Story Photo: 1185 Route 9 South, Cape May Courthouse, NJ
  • Purchased $185,000
  • Rehab $150,000
  • ARV $475,000
  • Fix & Flip Philadelphia, PA
Builders Trust Capital Success Story Photo: 10 Anderson, Morristown NJ
  • Purchased $1,675,000
  • Rehab $450,000
  • ARV $3,955,000
  • Fix & Flip Cape May, NJ
Builders Trust Capital Success Story Photo: 10 Anderson, Morristown NJ
  • Purchased $550,000
  • Rehab $208,286
  • ARV $1,005,000
  • Fix & Flip Haddonfield, NJ

How to Finance Your Real Estate Investment

Our process is simple! We handle the entire loan process in-house. Loans are closed in as little as 10 business days.

Get Started

Fill in the form or call us at 856-422-3232 so we can contact you and begin working on your loan. We're local and happy to meet with you to learn your funding needs.

Pre-qualify

Complete your application and provide supporting documentation.

Proof of Funds

Increase your buying power with a proof of funds (POF) letter.

Loan Processing

Your appraisal and title work are ordered. Your application documents are reviewed. Our in-house processing team will contact you with any questions or additional documentation required.

Get Funded Now

After underwriting is complete, we make sure your closing docs are ready at the table and funds are disbursed timely so you can start your work without delay.

Testimonials

Photo of Alexandra Petruchenya

I appreciate your team's support during the entire rehab process for my property. This is my first deal, there were a lot of unknowns that came with that. The construction process intimidated me and held me back from doing real estate for several years. Kurt has been phenomenal, he was a wealth of knowledge. I appreciate how he gets in touch to talk through in-scope item completion and aligning on ways to ensure my construction draws are adequate. I'm thankful to have someone who has my business's best interests at heart.

Alexandra Petruchenya recommends Builders Trust Capital
Photo of Sharina Jackson

I recently completed a cash-out refinance transaction with Builders Trust Capital. I would like to say thank you to Anthony for your partnership during this process, your excellent customer service and professionalism made the process easy for me.

Sharina Jackson recommends Builders Trust Capital
Photo of Raphael Akinsete

If you are a newbie investor, I highly recommend Builders Trust Capital because your first few deals will impact your outlook on real estate investment. If you are a seasoned investor, I also recommend the company as they now offer products for both quick flips and long holds. This way you are covered in both your entry and exit strategy. As a longtime client of Builders Trust Capital I can testify that they are the real deal and there are genuinely good people behind this business.

Raphael Akinsete recommends Builders Trust Capital Oct. 2020
Photo of Kristian Latham

Just finished up my first project with the Builders Trust Capital team and wanted to share my appreciation for the good business. Success is often driven by effective relationships, and Builders Trust Capital’s partnership assisted me in strengthening my team all around. The process from beginning to end was smooth and efficient. They are a great partner to have to create opportunities for rookie and veteran investors.

Kristian Latham recommends Builders Trust Capital Aug. 2020
Photo of Timothy Rosenblum

Builders Trust Capital lives up to its name. They have truly been a partner to me with my projects. The process from underwriting to construction inspections has never wavered from their initial promise and Ive always been met with professionalism and efficiency. Rare in this space.

Timothy Rosenblum recommends Builders Trust Capital April. 2021
Photo of Mike Bonadies

Builders Trust Capital is an incredibly responsive and flexible lender for RE investors. They have been able to work with my unique situations and helped us close on properties no one else could. They know their local area well and can offer guidance. I highly suggest them.

Mike Bonadies recommends Builders Trust Capital

Ready to discuss your funding needs?

Just contact us by phone 856-422-3232. If you prefer, send us a message and we’ll contact you shortly. Let's get started working together.

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