Welcome to my website! In this article, you are going to discover the three crucial elements you must know before you ever get residential hard money from any source. These things are so important that if you don't factor them into your decision when getting a residential hard money loan, you'll have an extremely high probability of defaulting on your loan.
And I'm 100% certain that you have no intention of going through all the stuff that comes with defaulting on a loan!
But before I get into that, let me ask you some really important questions...
What I want you to do is think critically about these two questions for a moment. Because if you can't answer "yes" to either of them, then you are doomed from the outset with hard money residential loans!
So with that being said, let's address how you answer these questions as they are the first two crucial elements you must know before you get a loan.
What makes some residential hard money loans different from others?
Most people will naturally go straight to things like the interest rate and payment terms when evaluating this question. And while those are important, they aren't the most important factor to consider when comparing hard money loans.
The thing you need to be looking at most closely is the criteria the lender uses in underwriting the loan. If the residential hard money lender REQUIRES a certain credit score to qualify for a loan, they are forming the loan to meet "traditional" lending requirements so they can sell off your loan to banks or Wall Street.
These types of loans don't offer the flexibility and autonomy that you need as a real estate investor to be successful.
What separates the real residential hard money lenders from the not so good ones?
There are a couple of moving pieces to answer this question and one of them is couched in the previous point I just made. A fake hard money lender sells off their loans and doesn't service them for their customers. This really hurts you the borrower... let me give you an example to illustrate this point.
If you are doing a fix and flip project, there's a LOT of things that can go wrong - even when you planned for them. If you are working with a lender that actually services the loan, you can often negotiate with them for extensions because their success is tied to yours.
If your loan has been sold off to a bank, you'll never be able to do something like that. In the case where something goes wrong with your project, you'd more than likely default on the loan without being able to get an extension.
The second is fee collectors. There are quite a few businesses that claim to be an actual lender when they in fact are not. What they do is get you to complete an application and pay some fees. Then they submit your loan request to the actual lender.
These fee collectors could care less if you get approved or not because they get paid out of the non refundable fees they took from you.
You absolutely must be careful of these scenarios before you ever get residential hard money loans!
What's the third crucial element?
You have to make sure that you have a plan for success and actually execute on it. Investing in real estate isn't for sissies. It's for people who have guts and gumption. People who take action and can get things done in a short period of time.
Remember, with a hard money loan you have a really short term on the loan. If you don't get it paid off in time, you default and are screwed.
If you are just getting started with real estate investing, I have something really cool for you. For a limited time, I'm giving away a FREE copy of my book & CD that are full of the best resources to developing a plan for being successful in real estate. Just click the button below and you can get them on the next page:
For those of you that know you are ready to get going and want to find the very best options for a residential hard money loan, simply click the button below. You can get instant access to our over 35 hard money loan options.
[ 2016-06-22 02:23:50 ]
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