Financing flip properties can be a very tricky proposition, especially with banks having tightened their belts since the housing crash. Luckily, it is not an entirely lost cause. While some of the more advanced methods might require significant capital, that doesn't mean that they all do.
Ken Meyer
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While it may seem, to the inexperienced, that hard money lenders operate in a "no man's land," the reality is, the top Hard Money Lenders have certain key characteristics in common. If you do decide to retain the services of a hard money lender, here are some of their best practices that you should be on the lookout for:
Let's start with the basics. When you invest in a trust deed, you loan money and secure the loan with a first lien on the real estate as collateral. Called a "deed of trust", it works like a mortgage; a private mortgage recorded by the county recorder that shows the investor as the beneficiary. Sometimes, the borrower's personal guarantee secures the loan in addition to the deed of trust. Trust deed loans involve three parties: the lender, the borrower, and a trustee selected by the lender. The trustee acts on the lender's behalf, holds the lien on the title to the property, and takes possession of the real estate if the borrower defaults. Trust deed loans are particularly popular in California because it is a non-judicial foreclosure state and the process can take just three months. Oh, the best part is that it costs nothing to invest in trust deeds.
3 Reasons Why Now is the Ultimate Time to get a Fix and Flip Loan
Posted by Ken Meyer on Mon, Nov 09, 2015If you are interested in investing in real estate, you might have thought about purchasing a fixer-upper and "flipping it." If you have been putting it off, you should know that there are a few reasons why now is the ultimate time to get a fix and flip loan.
To Flip or to Hold: Why a Buy and Hold Strategy May be Right for You
Posted by Ken Meyer on Tue, Sep 29, 2015While recent market trends and media coverage have made fix and flip investing a more visible option for those looking to make money in the housing market, buy and hold strategies are a time-honored way of amassing wealth. If you are thinking of trying your hand at real estate investment, you may be wondering if a buy and hold strategy is right for you.
8 Renovations You Can Make Without a Contractor During Your Fix and Flip
Posted by Ken Meyer on Thu, Sep 24, 2015Home improvement shows on HGTV always involve making a tiny bungalow open concept and adding bathrooms. Installing engineered beams, replumbing a house, and knocking down walls require a licensed contractor and building permits. Some flips don't warrant that degree of investment and frankly are in good enough shape that modest cosmetic fixes will provide a generous return. These 8 renovations can be made without a contractor and offer a good bang for the buck.
Are You a Real Estate Investor? Why it makes sense to work with a Hard Money Lender
Posted by Ken Meyer on Tue, Sep 15, 2015If you're a real estate investor, working with a hard money lender makes a lot of sense. The many benefits of using hard money loans mean that, despite their name, they can actually make things quite a bit easier for you.
5 Less Traveled Tips to Find Hot Real Estate Deals Before Your Competition
Posted by Ken Meyer on Tue, Sep 08, 2015Before we even begin, a facing-facts session is necessary. The prime days of fix and flip may be behind us. A decision needs to be made. Do you want put down anchor and wait for the next cycle to begin? Or do you want to rev your engine and search out unexplored territory? If you favor the second choice, come aboard, but keep it hush. You're about to learn of 5 less-traveled tips to find hot real estate deals before your competition.
Real Estate Investment Property: How to Evaluate a Multi-Family Home vs. a Single Family Home
Posted by Ken Meyer on Tue, Sep 01, 2015Investors in single-family properties, at some point, wonder about multi-family properties. From a management point of view, after all, you have one to four homes instead of just one on a single piece of ground. First-time investors might have the same questions for the same reasons. The issue becomes, then, real estate investment property: How to evaluate a multi-family home vs. a single family home?
Six Key Things to Look for When Searching for a Hard Money Lender
Posted by Ken Meyer on Tue, Aug 25, 2015You’ve found the perfect distressed property to fix and flip. You’ve done your due diligence. The price is right. The rehab is doable and can be done on a timely basis. The profit is just waiting for you.