subject: Finding Hard Money Lenders Made Easy [print this page] Hard money lenders do not use screaming neon lights or giant tarpaulin signs. You usually wont find ads outside their offices that they are lending money for real estate investing or other purposes. That is why some say they are hard to find. However, finding hard money lenders is difficult only if you dont know where to look. Here are some tips that can make your search a bit easier.
1. Talk to your neighbor. Literally, talk to your neighbor. You can never tell, maybe your neighbor is indeed a hard money lender. Sounds funny but this is a serious suggestion. These kinds of lenders usually work in the comforts of their home. They are basically people with ready money and are willing to fund your flipping houses project. You couldnt blame them if they are more discreet compared to traditional lenders like banks when promoting their services.
2. Call companies. You can also try visiting or calling mortgage and title companies or real estate agencies. These firms usually have contacts in your area. They deal with buyers and sellers so you might even find a hard money lender in such offices.
3. Read the paper. Some lenders advertise their businesses through classified ads.
4. Go wired. Perhaps the most convenient way of finding hard money lenders is going online. Some websites have a database of lenders nationwide. You can enter your location in these sites and they will find the lender for you.
In any case, you must always ensure that you know the terms and conditions that come with this kind of financing. While terms may differ, lenders usually grant up to 70% of the ARV, or after repair value, of a property. The ARV is the value of the property after it has been rehabbed.
For example, a fixer upper may be worth $45,000 upon purchase but might cost $100,000 after repairs are made. The $100,000 is the ARV. Getting around 70% of the ARV is usually enough to purchase the property you want to flip. It could even cover the repair costs. When that happens, you get to rehab a property without spending a single dollar from your pocket.
Thats the beauty of hard money financing. It allows you to earn money without spending a single dollar. You can also get cash even with a poor credit score as hard money lenders assess borrowers based on the deal they are presenting. If hard money lenders see that the property you are about to flip will yield positive results, they will not hesitate to fund your project. Visit REIwired.com to learn more about hard money financing and real estate investing.
