Not too long ago , real estate investors were able to get bank and mortgage company loans on investment property
easily. Even for rehab… Loans were flowing like oil No DOC… State Income…680 Middle Credit Score…Some banks had 3, 5, even 10 properties limit…minimum seasoning requirements and on purchase and refinancing …80/20 loans that eliminated down payments…Pay option ARMS starting at 1% interest….Broker appraisals and 100% LTV loans….And even real estate investor loans with cash out .
That was the Wall Street bundled mortgage security era ….those days are over and people who engineered those collateralized debt obligation securities may wind up serving time And where does that leave you, when you need funding for your deals in today’s market ? Today, A few real estate investor loan programs exist but the requirements are stringent:
Gone are the days of no doc loans
700 + credit scores
And banks are not approving tarnished credit loan applications …
severe one property limit and RIGID lender guidelines and loan SCRUTINY by oversightagencies.
Seasoning required-minimum 90 days, usually 1 year .
Conservative bank appraisal.
Larger down payments are required
Low interest rates for homeowners and high interest reates for investors …bye-bye Pay Option ARM, no interest only payments.
Higher origination fees and points …
No Rehab Money ….
and no cash out .
Application, processing, and approval process that takes 3 to 4 weeks and longer and usually just “sputters out”, with no other explanation than, “things are tough”. in the meantime, private hard money lenders have continued to loan money to real estate investors Even during the tough economic times.
Higher amounts of private hard money loans on investment property are being made than ever before!
Just evaluate the bedrock of a private hard money loan to the Conventional loan requirements .
Private lenders :
Minimal credit or low credit scores okay
Loans up to 100% of purchase price with LTV’s ranging up to 75%
Somewhat higher interest rate than a bank or mortgage company rate (if a bank or mortgage company was REALLY lending)
Flexible Private Lender guidelines with no “oversight committee”
Some private hard money lenders accept Tax Valuations as evidence of value and don’t require paid appraisal or Do the appraisal themselves by driving the neighborhood .
Fewer restrictions on how many properties as the rehab hard money lender does repeated deals with the private investors .
No property seasoning requirement to fund.
Bankruptcy and even foreclosures and even some collections permitted with explanation.
Higher interest rate, and points.
Alternative ways to structure payments including interest-only and sometimes monthly-payments are not required for the length of the loan.
Options and alternatives to cash-down
Flexible terms.
Even rehab hard money to improve the value and equity in your property with is a real advantage in the REO market.
Processing, approval and funding in 48 to 72 hours and in some cases as quickly as 24 hours.
And then you can get on with your next deal!
It is evident that hard money lenders are exactly what today’s successful real estate investors need. All you need to know is–who the private hard money lenders are, what their programs are, how to contact them and how to issue a loan package compliant with the lenders program .
Real estate investors don’t need to waste hundreds of hours of time trying to figure it out where to place their loans. The Private Money Lenders Source was originally created by www.OPMCredit.com by studying the needs of private investors needing private hard money loans. It now has the 300 best private money lenders including rehab hard money, who loan on residential and commercial investment property, across the country, regionally, and locally. Real estate investors are able to deal direct even for rehab hard money from these private sources
The bottom line of successful real estate investing in today’s market is to know the hard money lenders programs and conditions. And few other sources details the lender programs whereas the Private Money Lenders Source does. As a resource it is the key source for private hard money lenders for both seasoned and novice investors for all types of investing.
Source: http://easyinternetincome.net
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