Author Archives: Shawn Molem

Bad Credit Hard Money Loans for Funding Your Next Fix and Flip Deal

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.

Best Real Estate Investments – Tips on Making Successful Investments

Being a real estate investor, you need to make sure that you choose the best deals because if you are unable to find that, then you will face troubles while obtaining hard money loans. So, your ultimate goal should be to focus only on finding the best real estate investments.

I have discussed before that if you want to make good money in the real estate scenario, then you need to compare the estimated value of the property to the values you get from the evaluators, which are termed as comparables. In this way, you are using 2 comparables, one from the evaluator and the other based upon your findings.

If there are some deficiencies in your estimated value report, you can use the option of “Property Approval Plus”, which will give you all the information related to the locality where your property is situated. This will definitely help you in finding the best real estate investments with a planned and calculated approach.

That report will have the list of all the homes, which have been sold recently. It will give you a detail account about the background of the property i.e. when it was sold, for how much money it was sold, tax liens etc.

As the list is going to provide you all the details about the homes, which have been sold recently in the locality, so it will also help you to realize that whether the market is in depreciating or appreciating condition.

The report will give detailed information about the particular neighborhood; you are trying to work in. The number of homes that have been sold, the number of homes that are currently in the market and the comparison between the actives and solds of the last few months. These trends would be a great help in determining the final value of the property.

It is basically something that you should do yourself. While determining the value of your property, it is necessary to start your research by looking at the subject property and then determining the actives and solds in the neighborhood, having similar features. This is the best practice, which is ignored by many new real estate investors and ultimately, they have to pay the price.

After you are able to determine a rough value of the property in mind, this estimated value can be used as a comparison. But if the estimated value of the subject property isn’t right, then you need to an extensive research because it is the most important step. You can talk to other evaluators, drive in the neighborhood by yourself and check if you are missing something.

Finally, the Property Approval Plus will tell you about the economics of that particular area i.e. whether the homes are being sold or not or what is the nature of the market, if it is appreciating or depreciating. What is the condition of the homes, which are up for selling or the conditions of foreclosure properties?

Do Hard Money can help you in getting all of this data, if you will check their “Property Approval Plus” section. This service is quite cheap and it gives you some very important information, which will ultimately help you in making the final decision.