My Rehab Lender, Inc. is sometimes called a “hard money” lender. Hard money refers to a loan known as an asset-based loan . This kind of loan is based on and secured by the value of a specific piece of real estate. However, as husband and wife team Bob Nance and Heather Goodstein like to say, getting this kind of loan is not hard at all. In fact, they say, it’s pretty easy. Not only are these loans easy to get, but they are also flexible and fast. Real estate investors, in order to get a deal when it comes available, need to be able to get their money quickly, pay for the property in cash, and close in as short a time as possible.
There are times when the investor is going to need to pay for repairs along with paying the asking price on the house. That’s no problem for Bob and Heather, as long as the loan amount is not greater than 70% of the after repaired value (ARV) of the property. These loans have an interest rate of 12% or higher and an upfront origination fee of two points. This is one of the reasons these loans are sometimes called non-standard real estate loans.
- Hard Money Lender – a lender who can lend money on an asset-based loan financing
- Non-Standard Real Estate Loans – short term loan with interest only payments on properties with a minimum of 30% equity a loan of no more than 70% ARV or after repaired value
- Private Money Lender – same as Hard Money Lender
- Bridge Loan – a short-term loan taken out until the property is sold or refinanced or until it matures, whichever comes first.
There is one thing that many investors, especially investors new to the whole hard-money loan process, are not aware is important, and that is selling yourself. My Rehab Lender, Inc. specializes in dealing with established investors who have experience in the world of real estate investing and property development. If you have not been in this type of business, but you believe that you can fulfill all of the necessary criteria for obtaining this kind of loan, you can try these suggestions:
- Write a complete, well-written, thorough, realistic, professional business plan. If you can’t do that, then this kind of project is not going to be one you should attempt.
- You need to have some experience in the real estate business. Maybe you have invested in and managed rental homes. Maybe you have bought and sold more than the average number of homes. If you can prove that you are knowledgeable and seasoned, you just might be a good candidate. Be sure that you understand that this sort of investment takes hard-working, committed, and smart people.
- As for Heather and Bob, they have invested in over one thousand homes and apartments in the Dallas area. They are not a huge company, but they probably have more experience than some of the lenders in huge companies. The fact that they are a mom and pop business means that they are willing to get their hands dirty and give personal service to their clients.
Call Bob and Heather. They want to help you!