Category Archives: Home Loan

Hard Money Lenders – Investing in Single Family Properties

Category : Hard Money Loans , Home Loan , Real Estate Loans

I have found many real estate investors who find it very difficult to get financing from hard money lenders who will lend them money easily.

This is because many investors want to invest in properties which are quite economical and needs hard money loans under $30-50,000. But the problem here is that most of the lenders are not interested in doing loans for smaller properties.

They believe that these kinds of properties aren’t exciting enough. Sometimes, they also don’t want to do loans of $100,000.

But Do Hard Money is one of those hard money lenders, who don’t mind lending loans less than 40 or 100,000 dollars. We do not have any minimum as far as the loans make sense and you are able to pay fees for that.

So, if you’ve been struggling with investment opportunities and seeing opportunities around you, come talk to us. We would be happy to work with you. We would be happy to do the loans. No minimums or whatsoever and that can enable you to do those types of properties.

That’s why, if you have an investment opportunity around you, which you think would be good enough after drawing all the comparables and doing all the calculations, then you can come to us straightaway because we don’t have any minimums. This could be a great help for those who want to invest in small properties.

Personally, I think that those properties are fantastic. I think they are great way to start in real estate investing or they are even a great way to do lots of properties.

According to me, these properties are the best if you are just starting with real estate investing business. It is also good for those who are interested in working on single family homes because they could be rehabbed easily as compared to the commercial properties.

One of my friends is from Mississippi who only deals with small and cheap homes. He generally buys a property, which is between $30-50,000. He does fix and flip and later, sells them at around $70-80,000 after doing the repairs.

Basically, there are lot of investors who are ignorant about these small or single family properties because they think that the profit margin would be much less as compared to the commercial properties.

But you need to keep in mind that if you have bought a property for half a million dollar and the worth of the properties go down by 10%, then that means there would be a loss of $50,000. On the other hand, if you have bought a property which is worth of $30,000, then 10% loss would only be $3000.

With these kinds of properties, you have a lot more to gain and very less risk involved and that’s why, they could turn out to be one of the best investment opportunity for you.

Hard Money Lenders – The Secret of Successful Funding!

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Category : Home Loan , Real Estate Loans

Actually, only a small number of lenders truly understands the whole concept of fix and flip investing and these private hard money lenders are categorized into the following five basic types:

1. Residential lenders

2. Commercial lenders

3. Bridge lenders

4. High end lenders

5. Development lenders

Amongst these five different types of lenders, you need to find out which lender is going to be suitable for your real estate investment. Generally people start by investing into a single family home, that’s why they choose residential hard money lenders.

But the basic difference between the lenders depends upon the source of funds. That’s why; they can be easily categorized into bank lenders and private hard money lenders.

Bank Type Lenders – If you are working with a lender who is providing you funding with the help of some financial institutions, where they will sell or leverage your paper to the Wall Street in order to get you money. These types of lenders will be following some rules and regulations specified by the banks or Wall Street.

That’s why, in order to get the loan, you need to follow these rules and regulations, which isn’t suitable for a real estate investor interested in doing fix and flip investing.

Private hard money lenders – These are the lenders who work on private basis. They usually work in a group of private lenders, who likes to lend money regularly. Their best quality is that they do not sell their paper to any financial institution or bank. They have particular rules and regulations, which are made to help a real estate investor.

Private Lenders That Are into Fix and Flip – You can easily find residential hard money lenders, who are really into fix and flip loans. Most of the real estate investors find it quite difficult to get financing for buying a property, which they have taken under contract.

And when they finally a good property and contact a lender for funding, their loans can get rejected on the basis of some neighborhood problems. Then the investor look for another property but the lender couldn’t fund them because of market depreciation.

In this way, an investor is always looking for properties. But some lenders don’t have enough money to fund their deal, whereas others are continuously increasing their interest rates, which can’t be afforded. Apart from all these issues, you can find lenders who are willing to lend money on fix and flip properties.

These lenders also have certain rules and regulations like a typical bank or financial institution but they are designed to work in favor for the real estate investor.

Factors to Consider Before Getting a Hard Money Lender

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Category : Hard Money Loans , Home Loan

While the hard money lender cannot be compared to a bank, you can place certain measures into place in order to ensure you don’t get duped when getting a loan from them. This is a non-traditional loan and it comes in handy when you need to get private loans. For the purpose of ensuring you make the right choices, it is advisable to consider the following important factors. Experience: Find out the duration the lender has been in the market and the number of successful deals they have closed. In this case, you can look at their expertise and the type of customer feedback they have before making your decision. Industry connections: This refers to the investors and lenders they work for. In this case, it is important to ensure that they are well connected and they have the purpose and tools needed to ensure you access your cash without any difficulty. Keep in mind that those with many connections are able to get ready cash fast and this ensures that the job is completed within a short duration. You need to look at your local estate market. If it is performing poorly, there is the possibility that the rate for the cash is going to be higher as well. Always take time to carry out thorough research your local market keenly in order to ensure you make a decision that is in your best interest. References: In this case, it is imperative to ensure they are competent and what better way to confirm this than talking to people who have used the services before you. They will give you an account of personal experience and this will ensure that you get a lender that offers a deal that works well for your needs. If need be, make sure that you carry extensive and thorough research. Do not stop until you are certain that the choice you get is in your best interest. Prepayment penalties: Before getting private loans, it is important to ensure you get a clear picture of the prepayment penalties. Note that this depending on the lender selected, you might be expected to pay this or not. Prepayment penalty refers to the fee you incur incase you don’t make your payment as agreed. For the purpose of ensuring that you are not subjected to any unpleasant surprises, it is important to confirm this amount with the hard money lender. In most cases, it is advisable to settle with one that does not charge such fees. Always, before seeking to use these services, it is also advisable to ask them if they have state licenses. Every lender is supposed to have one and if this is not the case, then don’t use the services.

Get Home Loans With Bad Credit: Online Lenders Can Help You Succeed

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Category : Home Loan , Real Estate Loans , Residential Loans

For many citizens, the chance to own a home is not something to pass up. Owning a home is the best way to build wealth over time and a true measure of a person’s accomplishments. However finding home loans with bad credit may make this chance more elusive than ever. For borrowers with poor credit, home loans may seem like just another dream. However, there are ways to get the mortgage loan you need through online lenders who specialize in high risk lending.

Credit Is Still Important

Many people wonder why a simple three-digit score is so important when trying to buy a home. It’s just a number after all, right? Wrong. The Fair Isaac Corp. (shortened as FICO) developed the credit scoring system as a means to help lenders assess the likelihood of default on loans. The system take several aspects of your credit: your asset to debt ratio, your past history of repayments, bankruptcies, foreclosures, etc. and uses that to generate a score that tells lenders a lot about you with little fuss.

Basically, the point of a credit score is to serve as a short cut for borrower evaluation. Bad credit means that the borrower has had problems with money in the past and may have problems in the future. Therefore, when looking for a home loan, poor credit is an important element that a lender will use to assess whether or not you will be able and willing to repay the loan on time and in good standing. If you do not do this, the lender loses money.

Lenders Willing to Take the Risk

Even if you have reformed bad habits or, worse, your poor credit score is a result of factors out of your control (such as lay-offs or medical bills) most traditional lenders will still consider you a rick when considering you for a home loan. With bad credit, no matter the reason for that poor credit, you are at a disadvantage with most lenders.

There are clear exceptions to this rule, however. Many lenders who operate online are willing to work with people whose credit scores are lower than ideal. Why? Many of these lenders understand that in cases where bad credit is a thing of the past, a second (or even third) chance is warranted. These lenders will give home loans to those with bad credit because they believe you have the ability and willpower to succeed.

There Are Still Penalties

This does not mean that you are on even playing ground with other borrowers however. Because of your bad credit, home loans will come with certain penalties or other circumstances that will offset the risk your bad credit creates. Principally, this means that your interest rate will be higher than those low rates you see advertised all the time. There may also be certain fees for late or missed payments that are higher than those on traditional loans. It is important to read all the fine print on your final loan papers in order to understand all of these circumstances.

The good news is that borrowers with bad credit can still get home loans. With poor credit, it is easy to get discouraged, but it is not necessary. Consider all the options in front of you and start your search today!

VA Home Loans With Bad Credit: Special Qualifications and Tips

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Category : Home Loan , Real Estate Loans , Residential Loans

Serving the country as a member of the armed forces comes with many benefits. The 1944 Serviceman’s Readjustment Act, which many also know by the term GI Bill, was created to help armed forces veterans to get ahead after their service time has ended. One such benefit offered by the GI Bill is VA home loan assistance. This program allows vets to purchase a home with a low or minimal down payment. The VA will guarantee 25% of the loan instead. Also, those with bad credit are also able to find relief through VA loans.

Get a VA Loan: Meeting the Qualifications

The benefit of the VA home loan received through the Serviceman’s Readjustment Act (GI Bill) is that there is a guarantee from the department of Veteran’s Affairs (VA). This guarantee eliminates much of the risk associated with bad credit loans or low down payments. You can get a VA home loan with bad credit. However there are specific criteria that you need to meet as well. These qualifications include the following:

• No history of loan default within the last twelve months. Defaults in the distant past, though considered, can be disregarded if you have proven that you have reformed from your past mistakes.

• No bankruptcies on file in the past two years. Again, a bankruptcy on record will matter, but if you have made changes and allowed at least two years to pass, you can still get a VA home loan.

• Proof of current, gainful employment with a steady and reliable income. You need to display that you have the ability to pay for the home loan you seek.

Disabled Veterans

Armed service veterans who are currently disabled and receiving benefits due to their disability may still qualify for VA home loans with bad credit. This is because there are special additional programs that are offered for disabled vets. By speaking with a VA loan professional, you can see if you are able to get a VA loan with bad credit as a disabled veteran.

Improving Your Credit Score

Among the most important steps to take before applying for VA loans is making changes in your personal financial habits in order to increase the credit score you currently have. Simple steps that you can take in order to achieve this include consolidating debts and setting a clear budget to follow each month. Also, make sure that you have each month’s payments clearly marked on your calendar in order to avoid late payments that may make a bad credit score go down even more.

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