Do Hard Money provides you the absolute opportunity to do Fix and Flip Real Estate Investments?

Only about 10 years ago banks were willing to do financing and they actually finance as many properties as you will be able to purchase but you have to get what is called subprime loan. Subprime loan means the loan was typically for people who have bad credits but if you had good credit subprime lenders would actually do loans for you more than traditional lenders or paper lenders would do. One of things you can find out; one of the niches that were out there is that subprime lenders would allow a paper borrowers to actually do loans on non-owner occupied or rental properties.

In the old days about 5-10 years ago the subprime lenders if you have good credit would lend you money on a non-owner occupied and they would do that.

When it comes to fix and flip lending, one of the important things is to decide what type of financing you really need. So there are few things to be aware of; some people think that they are going to do afix and flip . They will just go down to bank because they have good credit and they will actually get a loan. There is a problem that banks don’t like short-term loans. It takes a couple of years for a bank to recoup their investment into the loan to actually make their money

So if you go down to the bank even if you could qualify for a loan with a bank, which is the first hurdle, the bank gives you that loan if you fix up a property and resell that property and pay off their loan in six months or less.

 

The banks are going to be kind of test off about that and in most cases it is going to hurt your credit scores because you took out a long term financing, 30-year financing, and you paid it off in a short period of time.

So when it comes tofix and flipI think your best choice t is going to consult hard money lenders. Hard money lenders are basically designed to do short-term financing for real estate investors and basically they lend based upon the assets regardless of your credit as long as you don’t have any judgments and you are not wanted by the IRS or FBI type situation. Then you are going to be able to get a loan as long as the value of the property is good enough. So it is an asset based Hard Money Loans which are basically granted upon the value of the property and Do Hard Money is the best in such loans. It is not going to hurt your credit scores. Most hard money lenders don’t report the credit unless they have to go into a collection situation. Secondly you are not going to have to go through rigermoral paperwork and get your blood pricked and go through a long drawn out process like a bank could have you do.