A statistic published by the National Association of Realtors (NAR) confirms the fact that the available existing housing market is not booming. In fact, the market was losing momentum as 2014 closed. Cash sales, mainly investors, only comprised 25% of the total sales in November. This was down 27% from October. The median housing price was near $200,000 and climbing. Investors were watching for a cost decline that could drive down prices on their existing properties. It didn't materialize. At a minimum that prevented immediate losses to existing holdings.
Wholesalers, flippers, and sellers. Oh, my. Anyone considering real estate investment (REI) needs to research the various avenues used to create a successful business. Get to know the business from others involved. Talk to agents. Discuss options with lenders, both standard mortgage and hard money. Remember, you are looking at being a business professional, creating profitable deals for the seller, the rehab flipper, or general investor, as well as yourself.
In the real estate “game,” nothing is more exciting than finding, rehabbing, and then flipping a property for a sizable profit in the time span you originally envisioned. Still, reality can often intrude and you will be stuck with a property that you cannot sell at a profitable price. When this happens, the prudent real estate investor has a secondary plan or “exit strategy” to deal with this eventuality.
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.
To the inexperienced investor, hard money borrowing may seem like a most unusual and daunting way to find funding for a real estate project. On the other hand, more experienced investors understand that hard money borrowing actually offers some significant benefits to anyone looking to fund a single/multi-family or apartment deal. Here are the most important benefits:
Finding the right real estate deal may seem like a most daunting task to an inexperienced investor but more seasoned ones know that there is an excellent alternative to traditional lending institutions – private or “hard” money. In fact, hard money offers some distinctive advantages to the funds provided by banks, savings & loans, and other traditional lending institutions. Here are just three:
Hard Money Advantage #1: Enhanced Versatility
The most advantageous aspect of hard money loans is their versatility, since the loans are made by accredited investors – who make decisions about their money on their own - there is no need to jump through hoops of traditional lending institutions with their subjective loan criteria and their loan approval boards. Instead, if a lender and borrower can agree on terms, the deal can be consummated in a legally binding and very secure way.
The finding and use of hard money financing may or may not be known or seen as a viable alternative to the average real estate investor, but it is a legitimate funding source that is eschewed by traditional lending sources because it cuts into their own profits. In fact, “hard money” is used all over the country to get deals done that would otherwise never be consummated. Here are three tips to get the most out of this resource:
The ascendance of the Internet as the preferred mode of communicating and obtaining information has made the mobile infrastructure a must-have for anyone involved in the real estate industry. I must give full disclosure that I’m an Apple user so this list is skewed towards my personal favorites, but Android users out there may benefit as well. With that in mind, here are seven real estate investment Apps that you should use at bare minimum: