2 Ways To Get Real Estate Loans

According to most people, you need money to make money

. You cannot just generate profits from thin air or expect cash to flow to your bank account without you spending a portion of your savings on investments. Like when harvesting crops, you need to plant seeds and wait until they grow before you can enjoy the fruits of your labor.

To make real estate investments, you will need a considerable amount of money to get started. But for those who want to become successful real estate investors but dont have enough cash on hand, dont fret. You can always secure real estate loans for your investment properties.

There are two common ways to finance a real estate project. The first one is to qualify for a bank loan or obtain the services of mortgage lenders. Bear in mind, however, that you will mostly need a good credit rating to get your loan application approved. You also need to present a proof of your income to convince banks and mortgage companies that you are capable of repaying the loan that you will make.

Another financing option is to get non-traditional loans, which include hard money and private money loans. Non-traditional lenders usually verify a loans eligibility by assessing the value of the property offered as collateral as opposed to conventional lending standards. These real estate loans are ideal for investors who have a knack for finding good investment properties but cant qualify for conventional bank loans because of their lack of creditworthiness.

Because private money and hard money loans are asset-based, a real estate investor can still borrow money even if he has a poor credit score. As long as hes going to use the funds to purchase or fix a property that has a high after-repair value, private money and hard money lenders will definitely come to his rescue.

A known disadvantage of non-traditional real estate loans, however, is that they cost more than the average bank loan. Lenders of hard money, in particular, impose annual interest rates of up to 18%. They also ask borrowers to pay origination fees, which are used to process a loan application. In addition, hard money and private money loans have shorter repayment periods.

Looking for a reliable and trustworthy source of real estate loans? Just go to www.RehabHardMoney.com. With an extensive database of dependable private money and hard money lenders, the website can hook you up with the most dependable lender in your area.

by: Elizabeth Wilson

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