The world of hard money lending is a tight knit one, but one that plays fair with those who act honorably. Still, each lender is trying to maximize their own gains while providing the necessary funding to borrowers. With those two facts in mind, here's what to expect when dealing with a hard money lender:
With property values on the rise in California, this is an excellent time to be in the real estate market. There are large numbers of distressed properties available with great potential for profit. Buying, renovating and flipping properties is a lucrative approach to real estate, as long as the investor avoids three common mistakes.
Maximizing your return on a real estate “flip” investment requires a few things. Obviously, you must buy the property at the right price. In addition, though, you must use your investment capital efficiently. This last factor means concentrating your rehab efforts on the places that provide the greatest return on investment. With that in mind, here's where we suggest that you start:
A hard money loan is a type of financing where the funds are offered by private investors or companies and are secured by real estate. They may come with some of the same qualification criteria as a conventional loan, including credit score and income analysis, but will more often be based on the value of the real estate that will be used as collateral. Typically, hard money loans will go up to about 70% of the purchase price. Some people are hesitant to explore hard money loans because they tend to have higher interest rates, but you should not base your decision on interest rates alone. In fact, hard money loans can be a worthwhile option for certain buyers. Here are 3 advantages of hard money borrowing: what’s in it for you?
Private lenders often move faster than traditional banks. They require less peripheral documentation than traditional banks because they are looking primarily at the liquidation value of the property in question. Anyone who has had to submit childcare expenses or make multiple appointments to deliver documents to traditional lending institutions in triplicate will appreciate being able to bypass the nonsense and get to work on their project faster. These loans are also likely to come with shorter terms. Instead of taking on payments for 15, 20, or even 30 years, hard money loan terms can range from 6 months to 5 or 6 years.
Many might suspect that hard money lenders may be difficult financing sources; that they have rather strict terms and can be quite complicated to do business with. What is the truth? The truth is that many experienced and reliable hard money lenders are actually very easy to transact with. How do you get a good deal out of them? Here are some simple tips.
The appraisal of your investment property’s value is not something you should take lightly. After all, a low-ball appraisal could kill your plans to sell it and make a profit. But is there really anything you can do to influence the appraisal value?
The answer is “yes.” There are some simple steps you can take which, if done correctly, could add hundreds, in some cases even thousands, of dollars to your appraisal value. Here are 6 inexpensive steps that are well worth your effort:
Fix Up, Clean Up
You've got your eye on a property, and you’re ready to take action, but first you need to get your funding lined up. The bank isn't an option on this one and you don't want to lose the opportunity, so you are looking for a hard money lender to help you make this investment happen. If this sounds like you, then you need to know how to find the best hard money lenders.
Can They Fund You Quickly?
A good hard loan lender should be able to close the deal in 10 to 15 business days and sometimes even less than that. Anyone who takes longer without significant extenuating circumstances affecting the investment is just wasting your time. One of the major reasons investors like you choose hard money lenders is because they offer much better turnaround time than traditional lenders like banks.
You want to flip a house to make money, right? It can be done with a little forethought and planning. Read on to find out the top 3 ways to stay on budget when flipping a house and avoid unnecessary debt.
Hard money lenders issue short-term loans for individuals who are seeking to purchase commercial or residential real estate. Some hard money lenders also extend funds for people who are purchasing land. Most hard money lenders work in private practice and do not utilize conventional financing standards when extending credit. Most borrowers use hard money lenders as a temporary loan that will need to be repaid with an agreed upon fee schedule for the term of the loan. Hard money lenders service a particular niche of buyers who can't acquire financing through conventional methods. Now that you know what a hard money lender is, you need to understand their unique structure of extending credit.
Hard money loans are easier to get than traditional loans, but that doesn't mean that getting qualified is as simple as just asking for the money. Here are five tips that can help you to get your loan more quickly.