Bridge Lenders, Commercial Lenders, Residential Lenders, Development Lenders, and high-end home lenders...which hard money lender is right for you?
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If you are a real estate investor and are willing to work with good hard money lenders, then this post could be a great help because if you want to be successful in real estate, you need to get a proper funding for your property. Do you want to figure it out how? Read ahead!
There are very few lenders, who really understand the concept of fix and flip investing. Basically, there different types of private hard money lenders, such as: 1. Bridge lenders 2. Commercial lenders 3. Residential lenders 4. Development lenders 5. High end home lenders
Out of these different types of lenders, you need to decide which one is going to be the best option for your particular situation. Usually investors are looking for residential hard money lenders.
Another major difference between these lenders is the source of their funding, which divides them into private hard money lenders and bank lenders.
Bank Type Lenders ? If your lender is obtaining finances from a typical financial institution such as banks, then they will fund you by selling or leveraging the paper to the Wall Street and fund you more as per your need. But these lenders will have to follow certain guidelines set up by the Wall Street or banks.
Being a borrower, you also need to follow those guidelines if you want to be qualified for the loan. But usually, these strict guidelines don?t go well with the real estate investors working in a fix and flip situation.
Private hard money lenders ? They work privately with a group of private lenders who lend money on regular basis. They make their own decision and control the whole process of lending. They do not believe in selling their loans to Wall Street or banks for getting more money and that?s why, their guidelines are quite encouraging for a real estate investor.
Private Lenders That Are into Fix and Flip ? There are quite a few residential hard money lenders, who are into fix and flip loans. Being a real estate investor, it would be very difficult to find money if you want to buy a property that you have taken under contract. They find it very difficult in finding a good contract.
Finally when they are able to find these lenders, their loans get rejected due to the problems in that particular area and the investor will look for another property but the lender will reject their loan application due to the decline in real estate market.
Hence, the investor will keep looking for different properties. Some lenders will don?t have the finances while others keep changing their interest rates as they are quite inconsistent. But you can find few lenders, who can fund for fix and flip properties.
These lenders also have certain guidelines like banks or Wall Street but they work in favor of the real estate investors.
DoHardMoney.com is a group of residential hard money lenders who give loans to real estate investors. As long as you can find good properties, you will find your loan approved at Do Hard Money. Click on the link below to find out if your property qualifies for a loan from Do Hard Money ? Hard Money Lenders
My name is Veronika Hudson and I?m from Virginia. I work for Do Hard Money as a Senior Marketing Manager.At DoHardMoney.com, we create Wealth. We simply do this by providing short term hard money loans to Real Estate Investors. We offer our long-standing as well as prospective clients the first-rate benefits.
Article by Veronika Hudson
Source: http://realestateinvesting.com/blog/2012/02/06/basic-info-on-hard-money-loans/
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