Best Source of Real Estate Funding

Best Source of Real Estate Funding

Best Source of Real Estate Funding

Instead of wandering and searching for real estate funding across town, you can just read this article. Real estate financing need not be as elusive as Steve Nash making a no-look pass. All you need to know is to find the right lender for the real estate deal you have. You can stop guessing now.

The best source of real estate funding today is called hard money. These loans are given by hard money lenders, who are considered non-traditional. Unlike traditional lenders like banks, these real estate creditors can use varying interest rates, depending on the deal. They can also release varying amounts of money, depending on what you agreed to. It is considered the best real estate financing today because it is fast and huge.

Hard money lenders usually need less than two weeks to process and approve loans, regardless of the size. One reason why they are faster than traditional lenders who usually take at least 30 days to process loan applications is their manner of processing. Banks usually scrutinize the borrower. Lenders of hard money, n the other hand, spend more time looking at the real estate venture the investor wants to take. If the unconventional lender sees that the deal is profitable, he will finance it. If he sees that the deal is profitable but needs the financing fast, he will fund it immediately.

Another advantage of using such non-traditional loans is the size of money that can be released by lenders. If banks are only willing to finance the purchase of an investment property, hard money is a different case. Lenders in this field consider how much the investor will actually need to make the deal happen. If the borrower is a rehabber, then he will need money to buy a house. He also needs cash to have it repaired and renovated for the property to be sold.

In this case, the lender will base the amount of the real estate funding on the value of the property in good condition, or the estimated selling price of the house. Using a percentage of between 60% and 70%, the computation will result in an amount that's usually enough for all of the borrower's expenses. The deal will proceed; the investor will earn profit; the lender will get the principal back plus the interest. This win-win scenario makes hard money the best source of real estate financing.

Want to know where to find such loans? Go to RehabHardMoney.com now.

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