subject: Step-by-step Guide To Obtaining Residential Hard Money [print this page] Generally, foreclosures have been nothing but bad news to many people. However, for individuals who are looking for real estate investment venues, the foreclosure boom provides a wonderful opportunity. And the good news is that, this phenomenon is not over yet. If you want to try your luck in real estate, there are thousands of foreclosed houses out there waiting to be purchased. To finance your project, you can borrow residential hard money from local lenders. In this article, we will share with a step-by-step guide to obtaining hard money for your projects.
1.Research lenders in your area. Researching lenders is very easy. One of the most convenient ways to do so is to scour through the Internet. Just type in the key words hard money lenders plus your area and in a click, you get a long list of possible financial sources. Just be careful when looking for lenders through the Web. Scams have been rampant recently so do not give out credit card details. Legitimate lenders do not ask for upfront payment. You can also find lenders by asking your fellow property investors. If you have an REI club, for sure, they will be able to give you credible names that they have worked with in the past.
2.Choose your hard money lender. After a long process of research, it is now time to choose your residential hard money lender. Before you pick one, conduct a brief investigation about the person. If he has a website, browse on the feedback from former customers.
3.Prepare your documents. While most lenders do not require credit reports and other financial documents, having these ready will expedite the approval process.
4.Develop a business proposal. Residential hard money loans are collateral-based loans. Your lenders do not really give high importance on your repayment capability. Instead, they look at the investment potential of your property. When you meet with your lender, hand him a business proposal on your property. You do not need to make it specific. Whats important is that you make him realize the potential of the investment.
5.Be prepared with an exit strategy. If you have plans of refinancing in 5 years time, let your lender know about this. It will increase your chances of getting approved for a residential hard money loan.
Finding residential hard money can be easy if you know what you are doing. For a list of hard money lenders in your area, check out www.rehabhardmoney.com.
by: Jamie Buzzer
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