The real estate market currently offers investors some of the best investment opportunities of more than a decade. Thousands of investors visit our website each month and investors need and ask for our funding help. How do I get my deal funded? What do private hard money lenders ask for? Which lenders should I contact ? What type of properties are they funding? What kind of funding is available and what terms are being offered. What do I need to do ?
Signing up for this newsletter could be your first step to learn the answers to these questions. With this knowledge you can learn how to help your partners, friends, and families brandish and you can build wealthiness for private investor goals .
Real estate investing opportunites have always has been and always will be one of the best ways to obtain and protect wealth. Experience demonstrates that. Real estate gives us the chance to have great tax benefits, build equity in our properties, and profits when we sell. But for many investors, the challenges arise in finding suitable investor backing. Learning how to obtain private hard money is key for a serious real estate investor .
The concept of using OPM (other people’s money) has been a platform to building wealth. It is true that most millionaires obtained their wealth or protect their wealth through real estate investing .
Often times realestate investing utilizes the funding of private hard money lenders. It is surprising to learn that not all of these investors had great credit. Many, in fact, started from scratch and built their real estate portfolios one property at a time and with only one or two private lenderst .
To be successful in getting your investment properties funded by private hard money lenders there two steps to follow .
1. Allocaate at least 5 to 10 hours a week on your investing business .
2. Divide that time equally in FOUR areas : finding excellent properties, writing offers on those properties, submitting those properties to private rehab hard money lenders for funding and finally, finding buyers through solid strategie market advertisements.
It is imperative to understand the lender’s programs and avoid submitting properties that do not meet those guidelines. The right property, in the right location, for the right lender. If you do not have any money for incidentals like appraisals, inspections, etc., get a partner who does. If you are planning to do rehab, some lenders will also lend you money for that by placing money in an escrow and then reimbursing you or paying your contractors outright when the work is finished and an inspection accomplished. Some investors will get a credit card from companies like Lowes, or Home Depot and use that for materials and even contractor work. Expenditures like that are reimbursable.
Don’t adopt the expectation that the lender has to fund every property that you submit. If the property is an excellent property, and one lender turns it down go to another lender but don’t “burn your bridges”. Remember, it is a relationship game and that same lender that turned you down may be able to help you on another property down the road. Focus on opportunity and forget negativism !
Private asset-based loan companies do actually compete for business. They are already aware of the existence of other private hard money lenders who loan in their areas and they try to make their loans competitive .
Sometimes private investors believe that their credit score will knock them out of the ball park when it comes to getting funding from a private “hard money” lender. This is not necessarily the case. However if you have an “average” or “bad” property and low credit, most private hard money lenders will tell you to work with a partner and look for excellent properties .
Anyone knows As we know Often times , your credit score alone is not the determining factor with private hard money lenders. A low credit score plays a major role with established mortgage companies, however. The term “hard money” lender is derived from the fact that these lenders only loan money on “hard assets”, preferably real estate. It could be a single family residence acquired for the purpose of
merchandising with a profit. Or it could be a single family residence acquired for the purpose of “rehabbing the property” and creating value and then selling. Or perhaps you want to acquire the property for rental . Or it could be a great mixed-use property !
It’s keay is to know your wealth strategy. Are you planning to gain wealth from buying and selling, buying and rehabbing, or buying and renting or a combination of the three? Which type of property do you want to concentrate on–residentialor commercial, SFR’s or apartments ?
Lenders also have wealth strategies. They do not lend on every single type of property in every single geographical area. Some lenders concentrate on specific types of property and some concentrate only on specific areas. Some will not lend on rural property. Some hard money lenders will not lend on land. Some will not lend on single family. Some will not lend on commercial. Investors have learned this and saved themselves a great deal of time and enabled themselves to become much more fruitful by creating a wealth strategy that is well-matched with the wealth strategy of their lenders. This is fundamental to building a relationship with a lender. Develop a solid exit-plan and your real estate investing business will grow rapidly and attract more funding.
