subject: Hard Money Lenders: A Big Help For Real Estate Investors [print this page] Being a real estate investor is one of the most profitable careers in recent years. However, to succeed in the housing business, you might be required to spend a considerable amount of money up front since you need to buy investment properties that you could either flip or rehab. Fortunately, hard money lenders can help you in this regard since they can provide you with the funds you need.
Compared to banks and other traditional lenders, it is easier to negotiate with lenders of hard money. Since you only need the approval of a single person, you dont have to deal with a processing team that will make you wait for a number of months only to reject your loan application in the end. In addition, you dont have to worry about your credit score or submit credentials and proper documentation since hard money lenders are not concerned with such things.
In addition, they can speed up the process of obtaining financing for you since most lenders can verify a loans eligibility in less than a week. Some of them can even process a loan application within 24 hours. However, there is a catch. To obtain the services of lenders of hard money, there is one thing you should do. You should find a property worthy of their time and money.
Basically, hard money loans, or HMLs, are asset-based. It means that lenders will look at the value of the collateralized property, not the borrowers credit history, to approve or reject a loan application. In the case of hard money lenders, they are after the propertys after repair value (ARV), which is a houses worth after it has been refurbished and renovated. If they deem that your investment property is worth funding, then you will receive their financial assistance.
To find HML lenders, it would be wise to ask for referrals from other real estate investors since most of them have already worked with these financiers. Accountants and closing attorneys are also good sources of names. Closing attorneys are the ones who usually prepare loan documents for these private lenders, while accountants usually have clients who are willing to finance the acquisition of investment properties.
You can surf the Internet to find hard money lenders since most of them advertise their services online. To make the process of securing financing easier for you, you can also visit www.RehabHardMoney.com, a website that brings together dozens of lenders and borrowers from across the country.
