What Property Investors Need To Know About Hard Money Lenders?
Property Occupying Mafia or Partner! Usually real estate investors have this strong myth about Hard Money Lenders of Arizona
. Real estate investors by and large believe that whenever they will involve hard money lenders in their business of investment, they will lose their prospective accomplishments or maybe they would be at the verge of an end in a very short while. Is it just a myth or actually it happens on realistic grounds? Are there any evident examples about it or real estate investors just use it for the sake of led downing? Lets evaluate it on realistic and factual grounds.
As a matter of fact, in lots of cases property investors may think that private money lenders dont want them to make money and that is the entire truth.Now lets talk about the difference in these two things.Property investors are people that are purchasing a property, fixing up and reselling it for a profit.They are typically individuals or if they are not individuals they are small corporations that are run and managed by typically individuals, their families or partnership or whatever the case.Their goal is to purchase an undervalued property, fix it up to increase value of that property and sell that property for a profit.That is what property investors are doing in existing scenario.
Now Hard Money Lenders are people that are providing funds but they are non-institutional funds meaning they are not banks or credit unions.They are not selling paper to Wall Street.They are private funds that have money they lend to property investors.Some property investors may think that hard money lenders are just out to get them and some of them are; thats a naked truth.Some hard money lenders are out to get property investors.In fact some hard money lenders are out on what we call loan to own program meaning they are loaning money with the intentions of taking back the property as fast as possible.And any time that a property investor screws up that hard money lender just occupy that property as fast as they can.
Such very few but factually present miscreants distort the image of hard money lending and lenders.But if they find good hard money lender; the hard money lenders dont want your property, they dont want blood from you.All they want is a return of their money and return on their money.The return of their money meaning that they get all their money back as promised as agreed to and a return on their money meaning that they are making a profit.So they want to make sure they get their money back and then they want to make sure that they make a profit on their money, which is all outlined they do to lend.
But if the property investor gets into a situation where they cant make money then the hard money lender could be in jeopardy of not only not making money but also losing their invested money.
As property investors you need to look at hard money lenders as partners as someone to partner their team and someone that can help skillfully evaluate the value of a property to determine that the deal is a good deal as a last line of defense.Once the property investors done all their due diligence such as talked to all the people, ran through comparables, worked at homes and determine that this is a good deal it is then thats the time for them to take it to a hard money lender who will also go through their own due diligence process and who will confirm that the property investor is really purchasing a good property.If the money lender confirms that a good property is being purchased it is a win-win situation for both because both parties believe that there will be profit and that is the core purpose of this relationship.
This is what we do for property investors at Arizona Private Money Lenders. We want to help them to be successful in deal.We want to help them make money because again hard money lender understands that if the property investors are making money they are making money.
by: Jeff Risk4
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