Bad Credit Hard Money Loans for Funding Your Next Fix and Flip Deal
Category : Hard Money Loans , Real Estate Loans
The shakiness of today’s real estate market is pretty obvious to everyone. This is ultimately creating difficulties in finding loans for flipping properties as well and if your credit score is bad, then the situation becomes worse.
But you don’t need to worry because as a real estate investor, your ONLY job is to find good investment opportunities. If you will keep wasting your time looking for a lender instead of finding good fix and flip deals, then you are going to end up in a problem. You need to understand that if you have found a hot property, it will draw the attention of money lenders itself.
After finding a property and making sure that it is worth investing, you need to get in touch with your local lenders. It is necessary to have a sound relationship with the right hard money lender because of two basic reasons:
1. They will fund you if you have found a good deal, irrespective of your bad credit
2. They will also advice and educate you through the whole process of buying and selling your real estate investment deal
Finding money lenders for bad credit isn’t very difficult if you’ll do your research properly and it is better to start this search by contacting your own lender.
But don’t give him a call asking about what-if or imaginary situations or if they will lend you on that with bad credit or not. As an alternative, you can check their website and look at the properties they have recently funded and try to find similar properties for investing.
Every true hard money lender put all these information on their website to make things visible to their customers. You can get all the details about those funded properties on their website.
The next important step that you should take is getting a proof of funds letter. While you are trying to find a good deal and planning to take it under contract, there are people who would like to know that whether you have finances available to invest in the deal or not. For that, you need to show them your proof of funds letter.
You can easily get a proof of funds letter after paying a minimal fee to your lender. You need to understand that it doesn’t guarantee you that you will get your financing. But it gives a guarantee that there are funds available for that specific property if it gets under contract.
If you really want to get bad credit hard money loans for your property, then you need to follow every rule and regulation set by these lenders. It is very important that the property you are willing to buy meets their guidelines. You also need to check their website to know what are the states or counties, they do lend in and what types of properties they are looking for i.e. commercial or residential.
You need to make sure that you are meeting their requirements and hence, playing by their rules. If you are having difficulty in finding good properties, then your lender can always help you with that by giving you some really good advice as they are experts of real estate investing business.