When Do You Need the Assistance of Hard Money Private Lenders?
When Do You Need the Assistance of Hard Money Private Lenders
?
Although there are certain methods of investing in real estate that don't require massive investment capital for you to get started, it is still important to have an access to a good source of funds. It is because there are certain instances that you will require quick cash to complete a real estate deal.
Some of the best and common sources of quick funds for real estate deals are hard money private lenders. Unlike banks, mortgage companies, and other traditional lending institutions, these financiers employ a shorter underwriting process that enables real estate investors to obtain fast cash. In addition, most of them are not particularly concerned if a borrower has less-than-stellar credit rating. This makes hard money lenders ideal money partners for real estate entrepreneurs who are having problems with their credit scores.
Meanwhile, here are some of the instances when you might need the services of these non-traditional lenders:
When buying distressed properties. As we all know, competition for foreclosed, distressed, and undervalued properties has become tougher than before. If you don't have enough funds to quickly close a deal with a seller, you might miss a great opportunity to make money in real estate as other investors would be jumping all over the house that you failed to buy.
When rehabbing a house. Obtaining the assistance of hard money private lenders can be very useful when doing a rehab project. For starters, you don't have to worry about paying for the cost of repairs and other expenses since most hard money loans have a loan-to-value ratio of 65%. So if you're going to rehab a $30,000 home with an after repair value of $100,000, you'll get about $65,000. You can spend $30,000 for the purchase of the property and use the remaining funds to pay for the repairs and other expenses.
When wholesaling bank owned homes. If you're going to do a wet closing to wholesale REOs, you'll need transactional funding to close the A-to-B transaction with the bank. And since hard money lenders utilize a shorter underwriting process, you can quickly get the funds you need and close the transaction with the bank or the lender in a flash.
Hard money private lenders can a great help to a real estate investor like you. So if you want to make your job much easier, get yourself acquainted with these creative financiers now. Meanwhile, for more information on securing hard money loans, go to www.RehabHardMoney.com.
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