Success in Real Estate using hard money

Money is hard to come by these days. This is an understatement if you’ve ever been in the mortgage business or have known of someone who used to be in the industry. Banks have either tightened their credit restrictions or they have closed their doors all together, making it difficult for people like you and I to buy a home. Real estate investors are far and few between nowadays. We’ve all heard the rumors of investors coming in from China or the UK.

Trust me there are investors right here in your own backyard. In fact, you could be one of those investors still buying and selling real estate for huge profits without the big banks like Wells Fargo or Bank of America. That’s right! There is money to be found and I have a list of lenders that are willing to lend up to 65% LTV and that’s if you have a terrible credit score at 500.

Obviously the better your credit the more money the lender will loan you. You may ask, who are these lenders?

That’s a good question. It’s called HARD MONEY. I live in Detroit and this Metro area is not unique. We have lots of foreclosures and abandoned homes on every street. Okay perhaps Detroit is one of the hardest hit areas but that is good news for investors like you and I. That means that you can literally own entire neighborhoods and cherry pick the good from the bad. Hard Money lenders understand this and they want to cash in on the opportunity just like you. But here’s the thing, they can’t be in all places at all times. Therefore they need people like you that understand real estate and have a drive to get out in the street and find the good opportunities that exist in just about every neighborhood across America.

What determines a good deal?

No one knows a good deal like the person who believes in it. It requires passion to inspire the imagination in the residential rehab business. Considering that a broken home with a flooded basement and missing windows and doors could ever reclaim its beauty. This is what investors are doing across the country in urban depressed areas. It’s no wonder why some make it and some don’t. Without a funding source to back you and provide financing to bridge you until you can find a qualified buyer that can take the subject property off your hands you will have a very difficult time turning a profit. One of the solutions we’ve discovered is a rich network of hard money investors that are actively searching for investors and borrowers that want to purchase a home.

You may ask what’s in it for the investor? That’s actually a good question and the answer is simple. Hard money investors typically charge higher interest rates and larger down payments. Interest rates have never been a focus and continue not to be an issue that enters into the picture because as an investor the interest rate is something that is short term and the cost of money is calculated as a future write off. The main focus is the payment. Can you afford it? Often times this is the main focal point. One should calculate the anticipated time for rehab, time to market and time for buyer acquisition.

This brings to mind the question, who is your real estate agent? And how is their list? That’s right, in today market it is important to interview the real estate agent and find out what they’re doing to generate listings and buyers. If they can’t prove to you beyond reasonable doubt that they’re originating buyers on a daily basis than perhaps you should seek another agent that is not necessarily experienced, the key is “innovative”. If they can generate the leads than chances are they’re going to sell your house a lot faster than the experienced real estate agent that’s stuck doing the same old thing to just barely get make a commission each month. If you have a real estate agent or you are a real estate agent and you’re looking for a new way to grow your list of buyers and sellers and you’re willing to try something new that is proven to work Mortgage Advisors Network can provide you with the resources you need to grow your list. What’s the point in borrowing hard money or buying real estate if you don’t have the network that’s required to find a qualified buyer.

Keep in mind that Mortgage Advisors Networks hard money solutions will also work for the buyer that wants to purchase the subject property from you as the investor. Mortgage Advisors Network is located in Detroit Michigan and works with investors, real estate agents and buyers to guide them to the finish line of their career and lifestyle goals.