100% Funding with Hard Money Mortgage

[Lea Simpsons]

Hard money mortgage  presents a rare opportunity for real estate investors: finance their deals 100%. This is something that is not possible with traditional loans

To understand how hard money mortgage works, you must know where hard money lenders base their computations. If banks and traditional lenders base the amount of the loan they will give you on your creditworthiness, these unconventional creditors use the collateral as basis. In real estate investing, the investment property is often used as collateral. In the case of rehabbers, what happens is that lenders of hard money financing base the loan on the ARV, or after repair value. 

As you may know, the ARV is the value of the property after all repairs and improvements have been carried out on the property.

To explain this further, let's use a $40,000 fixer upper home as an example. If the rundown house is worth $40,000 then and you are considered creditworthy by banks, you are likely to get the same amount from traditional lenders regardless of the ARV – $40,000. However, the case is different with hard money mortgage. Hard money lenders will base the amount they will release on a percentage of the ARV. For instance, if the ARV of the property is $90,000 and lender agrees to release 70% of it, you will get a loan worth $63,000. You will be able to purchase the house at $40,000 and use the excess $23,000 for closing and repairs.

 

-------

Lea 

The Ultimate Real Estate Investing Guide - REHAB-REAL-ESTATE

[Joe Dube]

Lea,

Sounds good, do you know of any hard money lenders that will fund a deal like that? Please let me know where to go. Also, here in West Florida we have a problem with sink holes. Do you know of any HML's that will loan on these types of deals?

thanks,

Dubeman

[Lea Simpsons]

Joe,

Yes, I know a place with full listing of local hard money lenders including your state that fund a deal like this. You can visit this website http://rehabhardmoney.com anytime of the day and start building a business relationship with a hard money lender from your local area .

---------------
Lea
The Ultimate Real Estate Investing Guide - REHAB-REAL-ESTATE.COM

Joe Dube said:

Lea,
Sounds good, do you know of any hard money lenders that will fund a deal like that? Please let me know where to go. Also, here in West Florida we have a problem with sink holes. Do you know of any HML's that will loan on these types of deals? thanks, Dubeman

[Joe Dube]

Lea,

Thank You. I will check that out, there's a real need for private or hard money in the market place.
Dubeman

[Lea Simpsons]

Joe,

Welcome, If you need more help regarding hard money/private money just let me know.

Lea

Joe Dube said:

Lea,

Thank You. I will check that out, there's a real need for private or hard money in the market place.
Dubeman