Today, a very few hard money lenders truly understands the concept of fix and flip investing. Below is the list of various types of private hard money lenders available:
- Commercial hard money lenders
- Residential hard money lenders
- Bridge hard money lenders
- Development hard money lenders
- High end home hard money lenders
You can choose the private hard money lender based on your requirement from the above given options. Usually the investors choose residential hard money lenders.
Bank type lenders – Borrowing from bank types lenders is similar as obtaining financing from a typical financial institution like banks. To be qualified for such loans you have to follow a set of certain guidelines, But usually these guidelines do not go well with the real estate investors working on a fix and flip situations.
Private hard money lenders – These lenders always work with a group of private hard money lenders who lend money on a regular basis. They have their own set of rules and regulations and they make their own decisions to control the entire process of lending. Due to their simple rules and encouraging guidelines, the investors find them the most suitable option.
Fix and Flip Private money lenders – A very few residential hard money lenders are into fix and flip loans. Being a real estate investor, it can be a difficult job to find money if you want to buy a property that you have taken under contract.
At last when they find these lenders, their loans get dismissed because of the issues in that specific area and the investor will search for an alternate property. However, the lender will reject their loan application because of the decrease in the real estate market.
Hence, the investor keeps looking for various properties. You still have an option of finding few hard money lenders, who can provide you loans to fix and flip properties.