For new investors, it is good to know how to get hard money lenders to fulfill your financial needs
. Most newbie in the real estate investing business find it hard to start buying and selling bank owned properties because they lack funds. Some are also afraid that borrowing money might hurt their credit scores in the future. For some, they cant even ask for financial aids from traditional lenders like banks because they already have bad credit history. This must not stop anyone from entering the real estate investment realm. If theres a will, theres a way.
Hard money lenders scrutinize not your credit history, but the potential sale of the property you are selling. If you are planning to do a rehabbing project and lack the funding that you need, hard money loans would be your best option. You should be a persistent borrower and show them that you are confident that you can flip the property in no time. Building trust for both parties can be a good start and it can make future projects possible. Trust is important because these hard money lenders can finance up to 70% of the estimated after repair value of the house. You have an ample amount to purchase the property and repair it. You can have more than what you need.
Hard money loans have more flexible procedures and terms. It would take the lender a week or two in processing your loan. Isnt that great? It is not like when you are requesting loans from banks. You need to wait for a month. Chances are, you would lose the property because there is a stiff competition out there among investors. Time is crucial in a real estate investing business; hard money lenders know that.
Another condition you must anticipate; these hard money lenders put higher interest rates on the amount you borrowed to safeguard their investment on you. In most cases, it depends on your credit history. These rates are higher than what banks are requiring their borrowers to pay. On a brighter side, its ok since you dont have to wait that long before you get the money you need. Interest may cost you an extra, but it is all worth it.
Money lenders are easy to find. You have the power to build your career in real estate investing. Visit RehabHardMoney.com and start the right way.