Hard Money Lenders
Commercial Hard Money LendersReal estate investing and purchasing real estate using rehab hard money lenders. Generally private rehab hard money lenders charge points to set up the loan and a higher interest rate. Some lenders will give you funding without asking for any payments until you sell the home. Some lenders will also loan you the money you need for the rehab. Don't set up a loan that is expected to be paid back on a short fuse. What if you can't sell the property in 1 month? What lender charges will be tacked on to extend? Are there other penalties that could affect your bottom line profit?
Friday, March 26, 2010
Real Estate Investing With Rehab Hard Money Loans
Hard Money Lenders
Rehab Hard Money LendersReal estate investing and purchasing real estate using rehab hard money lenders. Most private rehab hard money lenders loan for rehabs. Some include the rehab money with the loan, some put the money in escrow and disburse it as the work is completed. A good rehab does improve the property value. It can even be a cosmetic rehab like fixing the landscaping, repainting, new light fixtures, getting rid of the old cars, new double pane windows to make the house more energy efficient. If you're going to do rehabs, pick up a good book at your local bookstore on how to rehab and what adds the most money to the property. It will really open your eyes.
The other problem is "over-spending". You decide to add granite counters. You replace all the doors with solid wood. You install super high grade carpeting. All of these would be expected in a high end property in a high end neighborhood but if you're in a lower income neighborhood, it's over kill and only eats up your profits. Use good sense. Economy light fixture replacements, A good grade of paint instead of the best. Economy grade appliances instead of designer appliances. In today's market, you want to create a property that has good "eye appeal" but a new coat of paint sometimes does just the trick. Some rehabbers install one really good thing that fits the home but doesn't stand out like a sore thumb. For example, adding a built in dishwasher. Or a micro-wave oven with hood over the stove. Or a nice shower head. Or a two tone paint job. Also, on the subject of paint, pick good neutral colors. Some rehabbers use the same paint color every single time because they know people like it. Avoid stark "white" paint. It costs pennies to add some nice neutral colors and just a little planning. Remember, everything you add to the project deducts from your profit.Generally private rehab hard money lenders charge points to set up the loan and a higher interest rate. Some lenders will give you funding without asking for any payments until you sell the home. Some lenders will also loan you the money you need for the rehab. Don't set up a loan that is expected to be paid back on a short fuse. What if you can't sell the property in 1 month? What lender charges will be tacked on to extend? Are there other penalties that could affect your bottom line profit?
Rehab Hard Money LendersReal estate investing and purchasing real estate using rehab hard money lenders. Most private rehab hard money lenders loan for rehabs. Some include the rehab money with the loan, some put the money in escrow and disburse it as the work is completed. A good rehab does improve the property value. It can even be a cosmetic rehab like fixing the landscaping, repainting, new light fixtures, getting rid of the old cars, new double pane windows to make the house more energy efficient. If you're going to do rehabs, pick up a good book at your local bookstore on how to rehab and what adds the most money to the property. It will really open your eyes.
The other problem is "over-spending". You decide to add granite counters. You replace all the doors with solid wood. You install super high grade carpeting. All of these would be expected in a high end property in a high end neighborhood but if you're in a lower income neighborhood, it's over kill and only eats up your profits. Use good sense. Economy light fixture replacements, A good grade of paint instead of the best. Economy grade appliances instead of designer appliances. In today's market, you want to create a property that has good "eye appeal" but a new coat of paint sometimes does just the trick. Some rehabbers install one really good thing that fits the home but doesn't stand out like a sore thumb. For example, adding a built in dishwasher. Or a micro-wave oven with hood over the stove. Or a nice shower head. Or a two tone paint job. Also, on the subject of paint, pick good neutral colors. Some rehabbers use the same paint color every single time because they know people like it. Avoid stark "white" paint. It costs pennies to add some nice neutral colors and just a little planning. Remember, everything you add to the project deducts from your profit.Generally private rehab hard money lenders charge points to set up the loan and a higher interest rate. Some lenders will give you funding without asking for any payments until you sell the home. Some lenders will also loan you the money you need for the rehab. Don't set up a loan that is expected to be paid back on a short fuse. What if you can't sell the property in 1 month? What lender charges will be tacked on to extend? Are there other penalties that could affect your bottom line profit?
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