You might be a great networker capable of finding incredible real estate bargains. Still, without strong project management skills, you are bound to blow much of your potential profits. As a private lender, we see a consistent number of borrowers struggling to maintain control over their renovation process. However, you can avoid many issues by developing a roadmap for your renovation project early on. Such a roadmap is called a statement (or a scope) of work. A well-written scope of work is the foundation of your success as a real estate investor.
Hard Money Lender – Hard Money Loans – Blog
To be a real estate investor, you need to have quick and
easy access to capital. Real estate investing is a competitive filed. You don’t
have time to procrastinate when a good deal comes on the market. However,
conventional lenders fail to recognize that real estate investors – and
especially those investors who buy and rehab dilapidated properties – have
unique needs when it comes to the speed and the flexibility of financing.
Waiting for the application to be scrutinized for 45 days is not an option when
a cash buyer can snatch a property in a week or less. Hard money lenders fill
the vacuum left by conventional lenders by providing real estate rehabbers with
the funds they need – and on terms that make sense.
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.
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?