Maybe you have been considering investing in real estate, but you just don’t know how to start.. We want you to succeed, so let us fill you in on the type of real estate investing that might be a help to you, and , maybe, you’ll glean a few tips on getting started along the way.
The first thing you may be interested in knowing is whether or not you need to have had experience in the real estate investing arena in order to get a hard money loan. The answer is pretty simple. Most of the loans we provide are to people who who have proven themselves in the real estate market. That’s just good business sense. When someone needs a rehab loan and has done this kind of project before, naturally, that person is going to have the knowledge, expertise,and track record to make him a good risk. In fact, most of the clients we deal with do have real estate investment history. That does not mean that being a newbie to this kind of financial venture will automatically make you ineligible a rehab loan. And, know that everything you do now, will help you in your journey toward being a real estate investor.
We do most of our business with professional real estate investors and developers. If you are just beginning the business of investing in homes and properties, we will require the following:
- A thorough and well-written business plan
- Some experience in real estate investing
My Rehab Lender is willing to take inexperienced loan applications and will study them on a case by case basis.
We can hear you saying that you understood a hard money loan is a helpful and important tool for those who are investing in real estate. You are saying that that if you are looking to make the best profits, complete more projects after this first one, and use a loan to reduce the amount of capital that will be needed to accomplish your project, that you are going to need a hard money loan.
Let’s talk about how you can get started and how you can, eventually, get a rehab loan.
- Make a plan. You are going to need a business plan, house or property specifications, and an estimated budget. The hard money lenders will be able to help with some important pieces of the project puzzle, but you will need to have everything prepared and available when you apply for your loan.
- Be completely accurate about what you include in your application. Fortunately, hard money lenders are interested in the the value of the asset more than in your personal finances. Less than perfect financials are not going to be the reason you do not get a loan, but inaccurate or “false” information will. Be as honest and complete as you possibly can.
- Realize that you will need some money to pay for plans , appraisals, and so forth. With a hard money loan, you will not have to come up with money you don’t have, but you will be responsible for some payments. Be prepared.
The real estate market waits for no one. You have to be able to “strike while the iron is hot”. If you follow some of these tips, and get the hard money loan, it can usually be completed within about two weeks. Get your ducks in a row, be ready and, remember, everybody had to start somewhere. Don’t quit before you start.