There are a ton of creative ways out there for home owners and entrepreneurs alike to finance those sought after remodels. All of these options have their own temptations, but it is important to remember that you should choose the best practice for you. Of course, there is no harm in speaking with a financial advisor, who may have used somewhere like https://www.leadjig.com/ to help with their marketing, to go over all of the options that are available to you so you have a better chance of being able to make the most out of this situation. But the decision ultimately lies with you. Here are just a few of the popular ways they are doing it. Each has their own time and place. The tricky part is knowing which is best for your situation. We at FINN hope this helps you get a head start!
Cash
While probably the best option if you have it, let’s be honest, it’s not a luxury we all have. Especially on those bigger renovations, it’s not always a good idea to tie up all of your money. Now if it were smaller renovations, like installing marble vanity tops in your bathroom, for instance, using cash could be a good idea. But for larger ones, it would be safer to put someone else’s money to work for you. However, if you’re able to swing it, the pros are extensive and the cons are almost non-existent. Compared to the other options on this list, if you have a money tree growing in your backyard, go pluck that baby. For the rest of us, keep scrolling.
Bank Loan
Most banks offer personal loans that can be used to Finance that renovation. However, it may not always be easy to qualify for them and can be time-intensive to go through the process. Of course, you can find more info on Atlantic Union Bank loans here and discover what the vetting process is like. Although sometimes time-consuming, it’s often worth it. When there is an opportunity right in front of you a regular bank looks at your financial situation like credit and debt ratio instead of the opportunity itself. Plus, banks like guarantee’s and the interest rates can get as steep as credit cards depending on your qualifications. On the plus side, they are fixed payment plans that don’t change. Pro tip: you can do a weekly payment as opposed to monthly or bi-monthly and can save a bundle. If you have gained debt whilst doing any renovations, you can also look at the option of talking to and working out a debt payment plan with companies like CreditAssociates, this may help with keeping on top of payments.
Hard Money
These are like bank loans, except they are with private lenders. This can be good, because you can qualify quicker than large banks and their qualifications have more wiggle room than traditional banks. The downside is they have higher interest rates. A lot of times banks follow protocols about the individual’s financial situation, while private lenders can be a good alternative if you can show you have a good opportunity. In my personal experience, private lenders are more open to broader lending practacies. However, a lot of times they Require to be put on the deed, so if you can’t pay they can take the house as collateral.
Credit Card
This is the option that probably scares the most people. However in some circumstances can definitely be a good option if you are willing to run the risk. Some companies offer 0% interest for a certain amount of time. However, as you have probably heard (if lucky enough not to experience) the interest can stack up very quickly. Credit cards always remind me of the famous quote from Spider Man “With great power, comes great responsibility”. So they are a powerful tool that can quickly help you out of a bind, However they have a big bite if misused.