subject: Private Money Loans Give You A Reason To Find Opportunities In Real Estate With Bad Credit [print this page] You are an entrant into real estate business but you have a bad credit then still you have so many opportunities in this business. There are lots of private lenders or hard money lenders that are willing to lend private money loans to you. You may be asking yourself why in the world someone would want to lend to me regardless of what my credit scores are and the answer is really simple. It is not about you it is about the value of the property that you have selected.
If you are going through a rough phase with respect to your credit condition, and you feel really hopeless about any lending agency, to provide you with Private Money Loans, then still it is a very realistic situation. You will be awarded with loan funds, depending on your selection of property. It is the item which is going to serve you with financial uplift and that of your private money lender. When we talk about credit then it means that is going to be something those hard money lenders and even nobody is going to touch and here they are. If you have a bankruptcy in the last 12 months or you are currently in a bankruptcy then nobody is going to get in such situation of making a deal with you. You got to be out of your bankruptcy and you got to be out of your bankruptcy for 12 months so that is one thing.
If you have judgments or collections nobody is going to touch that. So judgments and collections can attach to properties and so if the lender actually lends you private money loans, and you bought the property that all of sudden is going to attach and that has to be paid off before you can resell that property. To give you an example, lets say you bought a property for $80,000 and somebody lent you money on that and you had a judgment for $20,000. Now there is $20,000 on the property that has to be paid before you resell it and that may be more money than you are planning on making in your profits. So you want to make sure that your collections and your judgments are paid if you are looking for a bad credit hard money loan.
In order to be eligible to get Private Money Loans, you need to be out of bankruptcy for more than 12 months. You want to make sure that you dont have any collections. You want to make sure that you dont have any judgments and you want to make sure that you havent had a foreclosure in the last 12 months. You want to make sure that you dont have any IRS leans or anything like that. If you are working with the right companies that will be willing to lend to you even if your credit is terrible, your credit may be zero. See the important thing about these loans for bad credit is that they are looking at the value of the piece of property not based upon you.
