Hard Money Blog: Invest, Revitalize, Create, Prosper

Why Hard Money Loans Get Denied?

December 11, 2024 by Kyle Sennott Leave a Comment

stacked cubes with words DENIED spelled out

Hard money lenders have less stringent requirements than their conventional counterparts. They are collateral-based and, as such, are less focused on the borrower’s income or credit history. That does not mean that every loan denied by a bank or a credit union can be easily approved by a hard money lender. Far from it. Hard money lenders serve a unique and relatively narrow niche. They work exclusively with investors looking to snatch a promising real estate investment opportunity. Yes, hard money lenders have streamlined underwriting, and their hard money loans can close quickly, but only when it makes sense for both the borrower and the lender. Let’s explore the main reasons your hard money loan application can get denied.

Heirs’ Guide to Renovating an Inherited Home

December 6, 2024 by Kyle Sennott Leave a Comment

Let me start with a disclosure: This article is not for everyone. It is for a lucky few who don’t have to hustle to find an investment property they can afford. Such property lands on their lap because of the great intergenerational wealth transfer currently underway. In the next 20 years, more than $80 trillion in assets will change hands. And if you are a lucky heir to one of the 26% of Americans planning to leave a financial gift to their families, such a gift might come in the form and shape of an older home requiring a renovation.

Title Insurance and How It Helps You Manage Risk

October 25, 2024 by Kyle Sennott Leave a Comment

Today, I want to talk about something that all the borrowers pay for at closings but typically have little understanding or appreciation for. It is title insurance. Title insurance is a type of insurance policy designed to protect both the owner (real estate investor) and the lender from financial losses related to title defects or disputes that may arise after a real estate transaction has closed. Here’s how it works and how it protects both parties:

Hard Money Loan Closing: How Fast and Who Is Involved?

October 21, 2024 by Kyle Sennott Leave a Comment

Multiple parties working together towards closing a hard money loan

One of our borrowers’ first questions is, “How fast can you close on my hard money loan?” The answer is always “fast.” The closing speed is one of the main advantages of hard money financing. Forget about going through slow and aggravating six weeks of a traditional lender crossing every “t” and dotting every “i”—no seller will wait that long. To succeed in real estate investing, you must move quickly and be nimble. That means you need a hard money lender capable of delivering on those tight timelines.

However, the process takes time and effort, even with the streamlined underwriting guidelines used by hard money lenders. A quick closing requires the cooperation of several parties. If one of those parties drops the ball, it could delay the entire underwriting process. Let’s take a closer look at the parties whose efficiency and quality of work impact the speed of closing on your hard money loan.

Best Strategies for Fixing and Flipping Real Estate

September 21, 2024 by Kyle Sennott Leave a Comment

Real Estate Investor Desk. They are developing their fix-and-flip strategy.

Fixing and flipping real estate—buying properties, renovating them, and selling them for a profit—can be highly profitable if done right. However, it also carries significant risks if not managed properly. As a hard money lender, we see some of our borrowers building thriving businesses and others giving up after their first transaction.

Trust me, the luck of the draw has little to do with it. What sets a successful real estate investor apart is their discipline in following the best strategies for a successful fix-and-flip investment. The good news is that you don’t have to reinvent the wheel or learn by trial and error. We’ve put together a detailed list of these best practices that is thoroughly reality-based. I can attest that ignoring each item on this list can drain your project’s profits. In contrast, paying careful attention to each bullet point will increase your profits and minimize your risk.

Credit Inquiries: Hard vs. Soft Pulls

September 11, 2024 by Kyle Sennott Leave a Comment

A businesswoman with a magnifying glass examining a credit history

Our hard money loans have a few underwriting requirements. For example, we don’t verify income and are not credit score-driven. That does not mean that our borrower’s previous payment history is irrelevant to us. We do take a look at their credit history – even if we are aware that it might not be stellar. Most of our borrowers are perfectly fine with it, but a few are hesitant. One of their concerns is putting an inquiry on their credit. “Do you do a hard pull or a soft pull?” they ask. Let me clarify some confusion about hard and soft credit pulls and give real-life examples of each.

Hard Money Blog: Invest, Revitalize, Create, Prosper

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