Showing posts from September, 2018

5 Situations When Using Hard Money Loans is Best

Do you know when choosing hard money loans is best? Although they’re not ideal for every situation, there are times when no other form of financing works quite as well.Hard money loans, also referred to as private money, can make a world of difference in certain circumstances. If you’re exploring your financing options for a project, knowing the benefits and when they perform best can help ensure your plan gets off the ground fast and finishes on schedule, all while keeping your expenses as low as possible.1) Fix-and-Flips: One of the most common uses for private money is home rehabs. Investors prefer it because they can get cash in hand fast and properties face less scrutiny then they might with other forms of lending.2) Fix-and-Holds: Many investors prefer to build up a portfolio of rentals rather than turning property around fast. While traditional loans still work well for this, they can’t always be processed fast enough and sometimes homes don’t qualify for them based on their co…

How to Know if a Hard Money Lender is the Real Deal

If you’re like most people looking for finance options, no doubt you’ve heard horror stories about lenders who totally dropped the ball and derailed a project. You may have even experienced it yourself. While personal referrals and online reviews can make it easier to find a reputable hard money lender, it doesn’t necessarily mean you’ll have the same experience. Moreover, companies tend to specialize in a specific loan type or cover a geographic area, so many people are on their own even if they’ve been through the process before or know someone else who has been. However, there are a few things you can look for when you make contact with a company that indicate they’re a good company to work with.
For starters, they’ll recognize your time is valuable. One of the biggest benefits of working with this type of financing is that it enables you to have cash in hand fast. If they’re dragging their feet and not returning calls promptly now, there’s no telling if or when you’ll get your cash…

Why New Fix-and-Flippers Get Denied by Hard Money Lenders (And What You Can Do About It)

People new to the home rehab business often make fatal mistakes that impact their ability to get funding. If you’re preparing to approach hard money lenders, you’ll need to have a few things in place to get approval.
It seems like today we have a fix-and-flip culture. There are TV shows designed around it and almost everyone knows someone who has done a flip before. Unfortunately, those just getting into the field can sometimes take this to mean that it’s easy or that it will generate millions for them overnight. While it can be quite lucrative, you’ll need to know the numbers and have a strategy in place before you can consider it a side-hustle or career.
One of the biggest issues is failure to consider additional cash needs. No matter how great of a deal you’re getting, you’ll need some kind of cash to get going. Although some will provide you with 80% or more of the value of the home, you’ll need to be able to pay the remainder on your own. Moreover, there will be expenses associated…

3 Ways Owner Occupied Hard Money Lenders Help with HUD Homes

HUD Homes are sold “as-is” and hit the market at fair market value after an appraisal, meaning they can be very low-risk investments. It may be difficult to find owner occupied hard money lenders for funding, but doing so may open up a world of possibility.The Federal Housing Administration (FHA) is part of the US Department of Housing and Urban Development (HUD). When a homeowner has an FHA loan and the home is foreclosed on, the lender can file a claim with the FHA for the balance of the loan. Once paid, ownership of the property is then transferred to HUD, which is then responsible for getting the home resold. The home is inspected and a fair market value is assigned, so residences which need work are priced accordingly. Those who wish to purchase a HUD home can choose from a number of financing options, including owner occupied hard money lenders. There are many benefits of going this route. 1. You can buy before other investors. HUD won’t sell to investors right away. When a home…

How to Build Wealth Using Owner Occupied Hard Money Loans

Owner occupied hard money loans are the unsung heroes of the real estate biz. Knowing how to leverage them is key for those who have dreams of going big but are just starting out.Many people dream of getting into real estate because it’s a solid way to build wealth, yet quickly back down when they realize it’s also an expensive “game” to get into. Although few realize it, owner occupied hard money loans are often a gateway to wealth, giving those with an entrepreneurial mindset a chance to build even if they come to the table with very little to start. Before getting into how to leverage them, let’s break down how they’re different.Owner Occupied: As the name implies, the person making the purchase intends to live on the property. This is common with foreclosures and HUD homes, with the latter requiring that the owner reside in the home for a full year before converting into a rental. Some co-ops and homeowner’s associations have a similar stipulation, though it’s generally permanent,…