Every real estate investment deal comes with its own set of unique challenges that buyers have to overcome. Three common issues buyers in California face are lack of capital, tight deadlines and slim profit margins. For most, that's part of the allure. These individuals thrive on the adrenaline rush that comes from turning an investment property into profit quickly and with as little capital as possible.
You might think that California offers a myriad of different types of properties that you can fix and flip. While there are homes of every size, shape, style and price range imaginable, they all have certain commonalities. Likewise, it doesn't matter whether the home is a single family home or a rental unit, they are very similar in terms of structure and investment potential. For most real estate investors, there are only two common types of fix and flip houses you will see a lot of in California; foreclosure auctions and short sales.
Investors 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?
Hard money loans are not for everyone. They are the province of a chosen few - lenders, as well as borrowers. Just the word ‘quick’ eliminates traditional lenders who subscribe to the longer the better philosophy, preferring to finance a loan for the long-term since interest payments are their bread and butter. Once a loan is paid off, their stream of revenue ceases.
Gone are the "good ole days" when the loan business was easy to understand. Regulations limited the number and types of loans and the businesses who made them. Unless they had rich relatives, borrowers depended primarily on banks or the government for loans.
What Are Bridge and Hard Money Loans?
A hard money loan is an alternative to a conventional loan where private funding is secured by the value of a property. Therefore, it can be obtained relatively quickly.
Investing in real estate can be risky. A savvy investor needs to know how to choose a lender who will be an asset to them. Not all are created equal. Here are five qualities to look for in a private lender.
A California hard money lender has a slightly different approach to issuing loans than other sources of debt capital. Understanding what a typical private lender wants can help you to not only send the right deals their way, but also to better package what assets you send to them.
Hard money lenders ask different questions from traditional lenders. You can't approach one simply expecting that a high credit score will be enough to get a loan. Instead, they look at you, your proposed purchase, and your equity to answer one basic question: Are you motivated to repay the loan? To this end, here are five of the most common questions that you can expect to be asked:
When it comes to hard money financing, you might get intimidated when talking to a lender and not always knowing the right questions to ask. Lenders are there to help you with your current financial situation and guide you through the financing options that are best for you. Hard money loans allow more borrowers to participate since they are easier to obtain than traditional bank loans. If you are thinking about getting a hard money loan, we have 5 Questions to Ensure Success with Hard Money Financing that you need to know before applying for your loan.