The Advantages of Private Rehab Hard Money Lenders

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 .

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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

Depressed Real Estate Market - A Bad Thing?

We have all seen and heard the headlines:

'Economy falls into recession'

'More gloom for US homes market'

'The worst market crisis in 60 years'

If you were an average person, your first instinct would be to take all of your money and put it under the mattress. The fact is that most people make their decisions based on what they hear in the media. When they hear all of the negative comments on the current market environment, they get scared and the last thing they want to do is invest. The same was true during the real estate bubble in 2004 - 2006. A lot of people invested in real estate when hearing about the incredible appreciation in property values, then saw their investments crumble just as quickly when the bubble burst. This human habit really shows us that the majority of people make decisions based on what everyone else is doing. A wealthy person once told me "if you want to be successful, you need to be doing what everyone else is not doing. Go against the grain. Take risks."

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Foreclosures and short sales are flooding the marketplace, which gives real estate investors many great opportunities to put their money to work. That is if you are liquid, since the mortgage market is still very tight on their lending guidelines. Distressed sellers provide investors with the ability to purchase real estate at prices that are below market value. With values dropping more than 20% (40% in some areas of the country) over the past 3 years, properties are now more affordable for investors. The same property that was selling for $200,000 in 2007, you can now pick up for $100,000 - $150,000. 

Not only is the current real estate market producing great buys, you are now seeing an increasing supply of renters. Homeowners who recently went through a foreclosure or short sale will not be able to purchase a property for a couple years. This provides investors opportunities to get into cash flow producing properties. With all of the challenges that real estate speculation presented over the past several years, it is important to find opportunities that minimize risk while providing a stable ROI.

Credits: Scott C Pierce

3 Key Sources to Locate Private Money to Purchase Investment Real Estate

Being a real estate professional in the Metro Detroit area, I'm constantly asked "Scott, can you find me a deal?" 100 percent of the time my answer is 'absolutely I can within 24 hours'. Then I add asking 'do you have a source of money to be able to close the transaction and purchase the real estate deal I've found you quickly?' More times than not I catch them with a blank stare on their face and not knowing what to say.

All across the United States there is plenty of 'deals' to be had, but with the lending restrictions that are being put out there and the competition to acquire these great deals, it's virtually impossible to build wealth through real estate without having different sources of money on hand to get the deals closed.

My easy answer to this is 'private money'. Again, I reiterate that it is my easy answer. The harder part of the equation for most people new to real estate investing is how to acquire the money.

My quick synopsis is three key sources that I have directed my clients towards to start on the path of investments that will be profitable.

1. Family Members

I know what most people will say here is that they do not want to mix business with family. And truthfully that makes for a good argument, but I have also found that most arguments are based on not having anything to put the family members mind at ease knowing that they will get a return on their investment and much less getting back the initial investment itself. What's great about private money in real estate is that the money lent is secured by the real estate itself, which in turn will give your family member a little peace of mind.

2. Financial Advisors

Many people play it 'safe' and put their money with their financial advisor. But like some people that I know as their 'nest egg' starts to grow they get the itch to put their money in 'play' in another sector and they start bugging their advisor for options. I would recommend contacting financial advisors and letting them know you are a seasoned investor and if they have any clients that have monies that they would like to invest and have it secured with real estate. You would be surprised at how many will sit and listen to you.

3. Real Estate Investor

You read this and think, wait a minute aren't they my competition? And my answer is absolutely, but they are also in the business of making money. And the best part of this source is they already know what they are looking at in terms of if the deal is going to make sense. There is a caveat to this in that the interest rates may be a bit higher, but if the deal is 'juicy' enough then it will be a win-win the whole way around.

There you have three sources that you can use to locate private money to help you through your real estate endeavors. Every client I have that takes their business seriously, I tell them to start there. And soon enough they will be the one being approached to invest in someone's deal.

Investing in real estate is not as hard as many people make it out to be. You can only do so much with banks then you will have to look for other resources. You must include private money into your strategies to become an ultra successful real estate investor.  

Article Source: http://EzineArticles.com/?expert=L._Scott_Ferguson

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Source: http://financeconsulting.co.cc