To be in real estate investing business, you need to have at least two major skills. First, you need to be a hustler. That means to be able to identify promising fix-and-flip opportunities and put them under contract at the right price. The second, and equally important skill, is being a project manager and having the tenacity to ensure that renovations are completed on time and within the budget. The key to this part is to know how to manage contractors so they meet your expectations. Managing contractors in a way that maximizes your profits and builds long-term relationships with good crews is our focus today.
Hard Money Lender – Hard Money Loans – Blog
If you are a real estate investor looking for distressed properties, one of the logical places to start is a foreclosure auction. Gone are the days when buying at foreclosure meant freezing your butt at the courthouses’ footsteps. Now you can shop for foreclosed properties from outlets such as Auction.home and Hubzu.com wearing nothing but PJ’s. However, many new rehabbers are apprehensive about buying at an auction and for good reason. If you are planning to buy an investment property at a foreclosure auction, you need to understand how this process is different from shopping on the regular market. Not knowing these differences may throw your entire real estate investment strategy out of the window.
The majority of hard money lenders do require some down payment. How much you need to put down on a hard money loan depends on three factors:
1. The price of a property you are purchasing.
2. The costs of the renovations you are planning to do.
3. The underwriting requirements of a hard money lender you
are working with.
If you are a real estate investor looking to finance your next property using a hard money loan, you are likely to have some questions. You probably know that hard money lenders work differently from traditional lenders in many key areas. But how do they look at credit? Can you qualify for a hard money loan if you’ve had some lates in the past? Alternatively, would your application be considered more favorably if you have a high credit score?
As our country navigates this health crisis, New Funding Resources is operating normally and is implementing measures to prevent any potential disruption to you, our valued clients. We continue to service our loans and monitor construction projects as normal.
The average interest rates on a hard money loan vary from private lender to private lender but generally are between 9% and 14% annually. If it sounds high for you, keep one important thing in mind: hard money lenders fund the type of loans that conventional lenders (such as your bank or credit union) will not touch with a ten-foot pole, no matter how much you are willing to pay them. The truth is that the average interest rate on a hard money loan reflects the high risk that a private lender takes by financing the transaction.