A Beginner’s Guide to Securing Real Estate Financing
One of the usual problems of beginners in the property investing business is securing real estate financing. Being new in the industry, many of them are not aware of what to do to get the funds they need for their real estate investments. And with traditional lenders, such as banks and mortgage companies, stepping up their lending criteria, it has become even more difficult for beginners to get financing.
If, for some reason, you can’t qualify for conventional financing, you might want to enlist the assistance of non-traditional lenders such as hard money lenders. To obtain their services, here are some tips that you need to follow:
One of the best ways to find hard money lenders is to surf the Internet. Most non-traditional financers nowadays use the Internet to advertise their services. Another method to find a potential money partner is to get referrals from your colleagues in the real estate investing business who have already experienced working with these lenders.
Hard money loans are basically asset-based. Meaning, lenders use the value of the property offered as collateral as their basis for approving or rejecting a loan application. Therefore, if you want to ensure that the lender will approve your loan application, see to it that you will get real estate financing for an investment property that can bring you huge profits.
Like any other investors or entrepreneurs, lenders of hard money should be treated with respect. These non-traditional financiers love working with borrowers who return phone calls and emails on time, as well as respond to inquiries in a timely manner. Thus, to ensure the approval of lenders, be as polite and courteous as possible.
Not all hard money lenders are willing to finance all types of real estate investments. Thus, to avoid wasting your time, you should identify early on which real estate investing niche your target specializes in. This will make it easier for you to structure deals that will suite your lender’s taste.
In case a lender rejects your offer, don’t be afraid to ask why. Maybe, the deal that you’re offering needs a little tweak or two. Lenders might reconsider their decision if you’re going to make certain adjustments to your loan application
If you don’t want to experience more difficulties when securing real estate financing for your investment properties, just follow these simple guidelines and you’re ready to go. Meanwhile, to find a good source of hard money loans, visit www.RehaHardMoney.com.
RehabHardMoney, the best place to look for hard money lenders and hard money borrowers. We specialize in bringing hard money lenders and hard money borrowers together.