Hard Money Loans Before You Go Shopping For Real Estate Find a reliable hard money lender because when your flipping houses, you never know how long it will take to sell the property. When you have a savvy hard money person in your pocket it helps when you need a cash infusion. The Hottest Real Estate Buys Come When You Are Out of Cash...
Most hard money lenders is more interested in the bottom line than credit scores. As long as the numbers make sense and you have enough cash flow, they are willing to talk. If the borrower has the cash flow to make monthly payments most hard money lender will make the loan, provided you meet the Quick Sale ratios. Poor credit is OK as long as the borrower can come up with an exit plan that makes since and show where the money is coming from to meet the debt service. Go to Direct Lenders.
Hard money lenders are concerned about three things. • The feasibility of the real estate deal. • Is there a sound exit strategy. • The ability of the borrower to pay back the loan. Good loan brokers that make hard money loans can close on a real estate deal in ten days or less, provided you have your financial paper work in order.
Loans are generally originated and placed by private lenders, rather than institutional real estate mortgage lenders and banks because these loans do not meet standard loan guidelines. Federally insured banks and mortgage lenders are regulated by Fannie Mae Guidelines for real estate loans and cannot make hard money loans.  A real estate hard money lender is interested in Equity and Quick Sale Value of the property in case you do not make your payments. Quick sale is based on a price at which the property would sell in 30 days of less.
Hard money lenders are not interested in owning the property, they want to make a profit by lending money. They hate foreclosures because it ties up their money and is expensive. If hard money real estate lenders wanted to own property they would buy it. What they do want is a fast and efficient way to recover their investment in the event the loan goes bad. This is why hard money real estate loans are usually 60% to 70% of the purchase price. It's easy to sell real estate for 60% of market value. Hard money lenders can usually fund a real estate purchase or refinance loan in two weeks or less provided your documentation is in order and complete. Be prepared to provide the following information if asked:  • Copy of your Purchase Agreement. • Personal and Business Financial Statements. • Proof of Income… and Tax Returns... • Proof of funds for Down Payment and Rehab Money. Having a complete financial package will speed up your funding. Before you start making offers to buy real estate, even if you are well fixed with cash and have plenty of money in the bank, line up some Hard Money Lenders just in case something goes wrong. Buying and selling real estate is a very cash intensive business. People that do not have the cash often get beat-up on their deals.
To take advantage of killer real estate deals that seems to come-up every time you are short of funds, have a back-up money supply lined up in advance. If you invest in a lot of real estate, your FICO score can drop because of the number of mortgages you have and all the financial activity that shows up on your credit report. Most hard money lenders can move very fast, but it’s best to find a lender you feel good about and ask what they will require in advance.
Do your business interviews with hard money lenders just like you were going to hire them to work on your team. Ask lots of questions and get some commitments from the lender up front. Keep in mind that making hard money loans is a business and they are just as anxious to do a loan for you as you are to get a loan commitment from them. For additional information read the following links:  The most credible reason for using Hard Money Loans is the time involved to qualify and close real estate transactions. Hard money lenders can provide you with the funds you need fast. When you are looking at a Killer Red Hot real estate deal time is the essence. The cost of funds is less important than the availability and speed of securing the funds.
Remember this the people that make real estate hard money loans are your friends they want your deal to work as bad as you do. HARD MONEY LOANS: As you know real estate deals can get messed-up and people get unhappy and start lawsuits. For your own protection learn how to defend yourself. Check out this site: Jurisdictionary Watch the FREE Instructional Videos. Left Side Half Way Down...
Home Page From: Hard Money Loans
|
