subject: Hard Money Mortgage Lenders: The Wise Men Of Real Estate [print this page] In today"s real estate scene, you are wither wise or broke. Wise men rely on fellow wise men to be able to sever through the challenges that cloud the market. This is where neophyte real estate investors go wrong: they ignore the fact that wisdom plays a crucial role in the ladder to success. They thread real estate realm with eyes closed and hands tied. It could have been a different story is if they sought help from hard money mortgage lenders.
Hard money lenders are known by some as "sharks" because of the interest rates they use. Little do newbie investors that the interest rate is nothing compared to what they will be getting from these creditors. So what"s the real deal with hard money mortgage lenders?
Here"s a little secret: hard money lenders are also real estate investors, or were investors. These creditors are people who have seen the local real estate market slid a bit, rise, plummet, soar, and stay flat. And if there are investors whom you could ask for advice regarding the local real estate scene, they would be the right guys. And because they have been in the business for years now, they also have the right connections. They know investors and fellow lenders.
Are you starting to see the logic why they use such high interest rates? First of all, you probably still don"t know that hard money mortgage lenders use annual interest rates. That simple means that if you secure a loan at a 15% annual rate that means you"ll be paying just a little over 1% per month. If you managed to pay the loan in six months, then you"ll be paying half the total interest plus the "points," which differ depending on lenders and locations.
Now that you know about the interest rate, you should know that hard money mortgage lenders can approve loans in just days. What does that mean for your business? It simply means you"ll have the confidence to go for deals because you can close in just a few days. You can beat competition. You can make very low offers because you have time by your side. A seller will choose someone who can close low today than someone who can close high next month. Also, when these lenders look at loans, they evaluate the deal you want to be financed. With their years of experience, they know what deals will yield profits. If they think you are safe in the investment, they will fund it for you.
Staring to see why it"s wise to use hard money for real estate deals? Go to RehabHardMoney.com right now and learn more about this amazing financing and how you can apply it to your business.
