Experienced real estate investors know all the fine points of hard money loans, but for novice investors, they usually need to learn more about it so that they make the right decision for their projects.
Let’s face it: ‘investing’ in anything is simply a more formal, standardized, and relatively stable form of ‘gambling.’ There’s a degree of risk whenever something is put on the line, whether it’s time or money.
Investing in real estate can be a rewarding, profitable career that if done right can set you and your family up financially for the rest of your lives. It can be tough to get started in real estate if you are coming into it with little capital and experience dealing in the market.
While hard money loans can be used for people will bad, little, or no credit, hard money lenders in Houston can also help investors who want to fix-and-flip a property and need a short-term loan without having to go through the lengthy underwriting process. Instead of going through a traditional bank that relies on credit scores and history, hard money lenders use private lenders and base the loan primarily off collateral assets, most often the value of a property.
While hard money loans can be used for people will bad, little, or no credit, hard money lenders in Houston can also help investors who want to fix-and-flip a property and need a short-term loan without having to go through the lengthy underwriting process. Instead of going through a traditional bank that relies on credit scores and history, hard money lenders use private lenders and base the loan primarily off collateral assets, most often the value of a property.
Since the real estate bubble burst and lenders began instituting stricter lending policies, investors wholesalers who deal with motivated sellers of distressed properties rely on transactional funding to close the deal.
A lot of myths surrounds hard money loans, and many people who would benefit from a hard money loan are put off by the stigma that surrounds them. Here are six myths about hard money loans.
Building your customized dream home puts you in charge of the decisions for every aspect of the process from the walls to the roof shingles. It can be an exciting journey that will create the house that you and your family will enjoy for years or decades to come. Seeking out custom home construction tips that save money and reduce maintenance costs will help make this enormous investment in your future a more cost-efficient endeavor.
The goal of a fix and flip is to purchase a property and make needed repairs and renovations before reselling the property as quickly as possible. Any delays in the process will decrease the value of your investment due to holding costs such as loan interest, property taxes, and utility costs.
Get familiar with the local real estate market before deciding if you should buy.
“A fixer-upper is a good buy when you have at least three similar properties that sold in the same subdivision, preferably within the last 90 days and within a quarter-mile radius of the subject property,” said Jesse Anokwuru, a real estate investor and loan officer at Tidal Loans.