Finding hard money lendors can be a relatively simple task. Some experts do say that it is very difficult to find hard money lendors or even downright impossible but this is just not so. A hard money rehab loan is not an impossible loan to find. Actually, in today’s economy it is even easier to find these types of loans and there are numerous sources as well. All it really takes is the know-how in finding the right loan for your needs. The following is an effective way to do just this.
Times are different but the most effective method for finding hard money residential lenders is by calling ads from your local newspaper. Most newspapers are now available online which makes searching the ads even easier than ever before. Online you will now find the best private lenders and some of the best firms and they all have websites. Comparing fees and loan terms is so much easier now that they are all online. Usually you can also find the process for the loan application and the requirements that you will need to fulfill in order to obtain a loan. The loan to value ratios, repayment schedules and the collateral that will be required is usually all listed.
Most hard money lendors will often require that you own a piece of vacant land to use as collateral. If they should need to foreclose, vacant land is much easier than any other types of collateral. Taking possession of a house is a time consuming and costly proposition because there are laws for squatter’s rights, renter protection laws, and a host of other regulations involved. The investor who wants to buy a residential house and rehab it is still able to find a hard money mortgage loan but there is just a lot more paperwork involved. To find good hard money financing for rehabbing a residential property it will be necessary to prove you have the income that will be sufficient for repayment of the loan. No lender is interested in taking a chance on a loan that will end in foreclosure. Private lenders will openly consider rehab properties while conventional lending intuitions will seldom take a chance on these kinds of properties.
Finding good hard money lendors is an important thing for real estate investors in particular. There will most likely be less upfront expenses which afford them more control of their positive cash flow making it possible to come up with better deals. Private lenders will also consider one-hundred percent financing which is a huge advantage to the real estate investor who needs to rehab the property to flip it.