Rehab Hard Money Lenders - This Is Something Every Real Estate Investor Needs To Be Aware Of!
==== ====Check out the link below for more resources:http://hardmoney.toufangle.com==== ====Do you have a hard time getting loans from rehab hard money lenders? Would you like to getloans fast for your various fix and flip investments? If so, pay close attention here. Youre about todiscover the exact methods you can use to filter out the right rehab hard money lenders from theones that wont help you with your investments...In the past, there were actually two types of loans rehab hard money lenders where giving out toinvestors like us. They used to provide loans for exclusively purchasing a property or for rehabbinga particular property that you already have/own.The lenders who gave loans to purchase the property assumed a primary ownership position inthe country records office for that particular property. On the other hand, the lenders who gavemoney for rehabbing the property were given a secondary position. This turned out to be quiterisky for the lenders that give out loans for repairs of the property.Whenever there was a foreclosure on the home, the person who has primary ownership of theproperty got 100% of his money returned. But there was no guarantee of return for the lenderplaying the secondary position on the property. This caused losses for plenty of lenders in theindustry and they had to shut down their business too soon.Thats why rehab hard money lenders these days fund only loans for purchase of the property orprovide funding for purchase of the properties as well as for the repair work involved.Conventional lenders like banks and other financial institutions wont even give out loans toproperties that require repair work anymore because they have no guarantees. IF the propertyrequired a lot of work, theres a chance that the buyer might walk away from the property and thebank will be left to fix up the property and resell it.Its a liability for the bank because banks arent really into fixing properties and reselling them forprofit. Sure, they might do a few fix ups in order to get rid of the property. But still, theres noguarantee of a return for them. They are money managers and not real estate managers. Thatsthe reason they dont give out loans to investors that are into fix and flip properties.Thats where private rehab hard money lenders come into play. These lenders are basically abunch of private investors who have their own decision making process and tend to have a strongreal estate background. These lenders give the following loans to investors:- Loans for purchase of properties- Loans for purchasing properties as well as loans for fixing them up
If youve made a decision to work with such rehab hard money lenders, youll have to filter themout in a careful manner. Not all lenders are the same. Some lenders will keep rejecting your rehabloan no matter what. Youll have to stay clear from these lenders and work with the right lendersthat provide loans for properties that you work with.Make sure that you ask your rehab hard money lender the following questions before you eventhink of applying for a loan with them:- Does the lender fund the purchase of the property as well as the rehab costs involved?- When and how do they give you the money? Is it after you invest something of your own? If so,what percentage?- Are they going to inspect the property? If so, how and when?- Are there any qualifications that they want the real estate investor to meet before they fund aloan?- How does the rehab draw process work?- Do they have any credit score requirements?These questions are extremely important. Make sure that you have answers to all these questionsfrom the rehab hard money lender before you work with them. Otherwise, youll have a hard timegetting rehab loans for your properties.Pay Close Attention Here -There are some things about rehab loans that most real estate investors do not understand. Ifyoud like to learn more about it and get a rehab loan for your property investment, visit thefollowing page - Rehab Hard Money LendersArticle Source:http://EzineArticles.com/?expert=Tyler_C_Anderson==== ====Check out the link below for more resources:http://hardmoney.toufangle.com==== ====