Getting Hard Money Lenders Seal Of Approval

Ensuring a good cash flow is one of the most important tasks of a real estate investor

. Because he needs ready money to buy, rehab, or flip investment properties, he has to make sure that he can get access to a good source of funds. Fortunately, there are many hard money lenders who are filling to provide funding for real estate projects.

Lenders of hard money usually consist of small lending companies or private individuals who have a huge amount of ready money on hand. Despite their negative sounding names, hard money lenders are more amicable and are easier to deal with than their institutionalized counterparts.

Most real estate investors obtain funding from lenders of hard money because these private financiers allow them to complete a deal despite being short in cash. And even if you have a bad credit record, you can still borrow money from these non-traditional lenders.

To get the nod of hard money lenders, however, you have to make sure that the deal you will present is worth their time and money. If these financiers feel that you wont make a big profit off a property, then it is very likely that they will reject your loan application.

To prevent such a scenario from occurring, always get the best deals when investing in real estate. Unlike ordinary bank loans, hard money loans are asset-based. If the property, for which the loan is being made, has a high after repair value (ARV), then the loan application will be approved. Therefore, you should see to it that the property you want to flip or rehab has a good ARV to obtain hard money.

To find hard money lenders, you can either use networking tactics or the Internet. You can ask the people you know or your colleagues in the real estate investing business for referrals. Because lenders of hard money are mostly private individuals, they could be anybody, even your next-door neighbor. Therefore, you can get names through networking.

Accountants, title companies, and settlement attorneys are good sources of names. These people usually prepare documents and do work for private lenders. They can certainly point you to the right direction if you ask them for help.

Since lenders of hard money have no storefront offices like banks and mortgage companies, they usually advertise their services online. Therefore, if you want to quickly find someone who will fund your real estate investment, you should surf the Internet.

If you want to know more details about hard money lending and where to find good hard money lenders, log on to www.REIWired.com.

by: Daniel Mc Grey

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