Conventional mortgages offered by traditional lenders don’t provide the flexibility and short timelines that real estate investors depend on. Hard money lenders like Black Brook Capital offer fast approval and competitive rates. Here are some types of real estate investment commonly funded by hard money loans.

Real Estate Investment: Wholesaling

The investor puts a property under contract and flips that contract to a cash buyer, charging a finder’s fee.

Wholesaling is when you get a property under contract and then flip that contract to another cash buyer, charging an assignment fee—usually between $5,000 and $20,000—for finding the deal. This is a great way to make some quick cash without making any repairs yourself.

Real Estate Investment: Wholetailing

The investor purchases a property, puts in just enough time or money to make it marketable, and sells it for a profit.

Unlike flipping, wholetailing involves purchasing a property that’s in good condition, requiring very little rehab before it’s put up for sale. The investor may just do a thorough cleanup of the property. Wholetailers sometimes paint or buy new appliances as well.

Real Estate Investment: Buy And Hold

The investor purchases a property for the long term, renting to tenants to create consistent cashflow.

Buy-and-hold investors purchase a property, do some light rehab if necessary, and then find tenants to get the home cash-flowing as quickly as possible.

The buy-and-hold method is good for building long-term wealth and increasing net worth. The BRRRR method, in particular, is great for purchasing lots of real estate with very little upfront money.

Real Estate Investment: House Flipping

The investor purchases a property, makes major repairs and updates, and then sells it for a profit.

The subject of many popular reality TV shows, house flipping may be the most prominent method of real estate investing. But it’s also one of the riskiest.

House-flipping requires a lot of time to fix up a property—sometimes up to a year. During that time, the market can shift in unexpected (and unprofitable) ways. To prevent the market from ruining your flip, you can switch to a buy-and-hold strategy until the market turns around.

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What investment type is right for you?

At Black Brook Capital, we’re here to help you choose the investment strategy best suited to meet your individual goals. Contact us today.