Hard Money Blog: Invest, Revitalize, Create, Prosper

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.

How to make a successful offer on your first investment property

August 7, 2024 by Kyle Sennott Leave a Comment

A first-time investor and her team shaking hands after making a successful offer on her first investment property.

So, you are ready to take a leap with your first investment property. You’ve found a lender, contractor, or even property. You are ready to sign on this dotted contract line… Or are you? I bet hundreds of “what-if” scenarios are running through your head right now. Am I overpaying? Is the seller hiding something? Will my lender fund the transaction as they promised to? Would I lose my deposit if they don’t? These are all legitimate questions. These are the risks inherent in real estate investing. These risks are especially high for new investors, those who have yet to gain experience in buying, renovating, and selling a property.

How to Lower Your Taxes with 1031 Exchanges

July 17, 2024 by Kyle Sennott Leave a Comment

Smartly dressed investor holding 1031 Exchange sign. A newly renovated home is in the background.

As a real estate investor, you work for months, getting up early, working on weekends and holidays, and taking all sorts of calls after hours. Not only you don’t get paid, but also spend a wazoo of your own money with the hope that one day you will make a profit. And when that day comes, guess who is knocking on your door? It’s Uncle Sam, and he wants his share. This is why every rehabber owes it to themselves and their families to know how to reduce their taxes. Reducing taxes directly increases the net return on investment. One of the best ways to do this is a 1031 exchange.

Radon Testing for Real Estate Investors

July 16, 2024 by Kyle Sennott Leave a Comment

Radon testing for flippers and landlords

Radon levels might not be high on the list of concerns of a real estate investor trying to decide whether to invest in a particular property. Title issues, renovation budgets, the accuracy of the after-repair value, and real estate market trends should all supersede it. However, when the dust settles, and the decision has been made, you need to ensure radon-level compliance regardless of whether you plan to sell your property or hold it as a rental. For this reason alone, any savvy real estate investor should know local radon regulations and how to address them.

Hard Money Blog: Invest, Revitalize, Create, Prosper

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