Speed ​​matters. It could be the difference between winning the Indy 500, attending tonight’s dinner, or making a profit on a real estate fix-up project. Many real estate investors turn to hard money loans to finance the purchase and renovation of rehab properties, and the need for speed is one of the main reasons.

How can you “win the race” in the world of real estate reforms?

Renovation projects are extremely time sensitive and require funding sources that can respond quickly. This is why:

· The fastest money gets the deal: In a high-density area like Washington DC, the competition for the right properties to fix up and change is intense. When foreclosed, abandoned, or dilapidated housing stock comes onto the market, it’s often the developer with the quickest access to financing that gets to keep the property. If you can’t arrange financing within a couple of days, you may be missing out on a great deal.

TIP: The US Department of Housing and Urban Development website has a portal that lists all foreclosed properties in the country. Take a look to see what’s available near you.

· Scheduling your Sale: In most areas, the optimal time to sell a fixer-upper is limited to a multi-month buying season, usually beginning in early spring. This means ideally time your purchase and completion of the rehab to coincide with the selling season. A fast private loan, available as soon as you need it, is the key to timing your rehab project right. A recent Zillow study puts the magic window to sell between mid-March and mid-April, depending on variables like location and weather. Homes sold during this window sold 15 percent faster and for 2 percent more. That’s real money in your pocket.

· flexibility: Fix-and-reverse or construction loans are often structured on a lottery schedule, so that funds are released each time you reach a certain benchmark (permitting, framework, etc.). This ensures a constant flow of funds throughout the project. However, cost overruns and construction delays can occur, and developers often increase the scope or schedule of the project after initial funding. Whatever the reason you need additional funds for your project, waiting for a new loan can delay the project. Hard money loans can be structured to include multiple phases, resorting to phase two or three only if necessary, and the money can be disbursed as soon as the same day, so there is no interruption to your project.