Rehab Hard Money Lenders - Their Basic Requirements!
==== ====Check out the link below for more resources:http://hardmoney.toufangle.com==== ====Rehab is basically repairing something, which isnt in a very good condition and then turning it intosomething better. This process is termed as Rehabbing.Similarly, there are houses, which need rehabilitation. If you look in your neighborhood, you couldsee that there are houses which are in a deteriorating state. This could be due to some naturalhazards like flood or earthquake or may be due to the inadequacy of the inhabitants.There are many families, who wants to live in a brand new house but they cant afford it. A lot ofhard money lenders can sense this and therefore, they help out these people in getting thoseproperties, which have been rehabbed and now are in very good condition.You must be wondering what these hard money lenders do. They basically lend money to people,who bring them good properties, which need a bit of rehabbing. They lend them money to buy theproperty and to repair it as per the requirement.Rehab hard money lenders lend money to real estate investors, who buy a property that is not in agood condition and then they rehab the property and get the needed work done on the property.Ultimately, they sell the property and make some profit.Rehab lenders believe that they can only make money if the borrower makes money and thatswhy, they help the borrower in finding a good deal.Rehab hard money lenders lend money on short term basis i.e. between 6 months to 1 yearmaximum. They fund to a property, which is not in a very good condition and turn it into somethingnew by doing small stuffs like painting, carpeting, remodeling the kitchen and bathrooms.Most of the times, these properties doesnt need a lot of rehabbing and the repairs are negligiblebut they just need a bit of touch up, so it could look presentable to the buyers.But one need to keep this thing in mind that there would be lenders, who a e not willing to lendmoney for the repairs and they are termed as non-rehab hard money lenders.The only difference between rehab and non-rehab lenders is that of repairs money and this isthing, which discriminate the true hard money lenders from other hard money lenders. If they knowthat you have a good deal in hand, true hard money lenders will definitely lend you money to buythe property as well as for repairs.But if your property doesnt need any repair or if you already have the money for repairs, then youcan use the services of non rehab hard money lenders as well.
Another important thing to realize is that hard money lenders only lend to the properties which arenon-owner occupied. They will never fund a property if the owner lives inside it because they dontwant to kick someone out of their house and there are a lot of legalities also involved when itcomes to owner-occupied properties.The best thing of working with a rehab lender is that they dont look at the current condition of theproperty but they try to figure out what this property would turned into, once the repairs are done.Working with rehab hard money lenders is quite easy. You can buy the property and start doingthe repair with your own money. After doing a certain amount of repair in the house, lets say 25%or 50%, and then you submit all the receipts of the repairs and ask the lender to visit the property.Once the lender is satisfied with the repairs, they will reimburse the money and then, you canmove on with the remaining repair work.Some of these lenders will reimburse all the repair money and some will give you only a certainpercentage of the repair money and you need to manage the rest by yourself. It is better to talkabout all these things before signing a contract.It is important to realize that rehab hard money lenders want to be sure that they make enoughprofit with the deal as they are doing the business. They are not here to take any risks and thatswhy, they dont fund you, unless they are sure about the property.http://www.dohardmoney.com/Article Source:http://EzineArticles.com/?expert=Alice_Green==== ====Check out the link below for more resources:http://hardmoney.toufangle.com==== ====