More Rehab Hard Money Lenders Close Investor Deals
Posted by: admin / Category: UncategorizedAs you know, a few years ago , real estate investors were able to get bank and mortgage company loans on investing property
easily. Even for rehab… Loans were abundant No DOC… State Income…680 Middle Credit Score…Some banks had 3, 5, even 10 properties limit…Minimal seasoning requirements and on buying property and refi …80/20 loans that eliminated down payments…Pay option ARMS start at 1% interest….Broker appraisals and 100% LTV loans….And even real estate investor loans with cash out .
The “Bubble” has burst on conventional lending and ….those days are over and people put together those CDO securities may end up in jail. 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
No bankruptcy, no foreclosure, no collections …
severe one property limit and RIGID lender guidelines and loan SCRUTINY by oversightagencies.
There seem to be lots of games with seasoning .
Conservative bank appraisal.
20% Down Payments.
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 ….
Cash-out on a refinance is out of the question .
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 through thick and thin, even in these tough times–
Higher amounts of private hard money loans on investment property are being made than ever before!
Let’s compare the fundamental principle of a private hard money loan to the bank or mortgage company investor loan program .
Private lenders :
Minimal credit or low credit scores okay
Loans up to 100% of purchase price with LTV’s ranging up to 75%
Rates slightly higher than the conventioal rate (if a bank or mortgage company was REALLY lending)
Flexible Private Lender guidelines with no “oversight committee”
Flexible ways to determine property 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 develops successful relationships with a real estate investor .
No property seasoning requirement to fund.
Investors are not excluded due to BK or even having property foreclosed int he past
Fees that reflect the level of risk, slightly higher than conventional loans.
Interest only payments and some have NO PAYMENTS for the continuance of the loan.
Options and alternatives to cash-down
Flexible terms.
Additional funds for rehab hard money available based on the deal
Funding and close in days 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 on a great investment property that matches their 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 real estate investors to secure 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, nationally, 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 investment 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 beginner investors for all types of investing.
