How to Find a Rehab Fix-N-Flip Loan
What Is the Best Way to Find Rehab Loans?
Whatever kind of loan you’re looking for– whether it’s a loan for a land, commercial real estate, rehab loan, new construction, or a bridge loan, there’s always the assurance that with the help of the best lending companies, you’ll be able to find the best rehab loan lenders from which you can borrow money with loans based on your needs.
However, it’s also important that you’re a qualified investor, and not a newbie. It’s a requirement to own an investment property that you can use as a collateral. With the use of an existing property that you already own, you’ll have the privilege of getting the 100% of your rehab financing.
Direct Bridge Loans
Though, there are some investors who prefer direct bridge loans. The reason for this is that, it’s possible to get a cheaper loan because you’ll be able to bypass the broker’s fee. Keep in mind though, this isn’t always the case, that’s why it’s important to look for a direct lender first in order to determine if you’re qualified for a residential or commercial bridge loan.
Why Consider Rehabbing?
Rehabbing is a profitable project, because it entices a number of real estate investors. The process involves buying old properties that are renovated to be sold at a more expensive price in the market.
Usually, these properties are available at a low price because of its present condition, and with just a little cost, it’s possible to sell the property at a higher price as long as you know how to refurbish it. Once it’s sold, the investor will earn from the profits that came from the sale of the property.
Hard Money Lenders
There’s a lot of direct nationwide hard money lenders who offer hard money loans, not only for real estate investors, but flipper who are in dire need of a large amount of money to buy properties for investment purposes. The reason for this is that, most banks and large financial institutions are against offering hard money loans. Thus, money lenders tend to take advantage of this and provide the kind of service that a bank isn’t willing to offer. Oftentimes, these lenders are private lenders and the loans they offer are higher than the conventional loan you can get from the bank.
Keep in mind though, these private lenders can either be individuals or private companies. Usually, private lenders offer 70% of the property’s regular price. Those who are thinking of acquiring hard money loan from private individuals should do some research first in order to determine who among these lenders is capable of providing the best deal.
Criteria of Rehab Investor Loans
Some lenders have their own standards in regard to approving their borrowers. There are those who only want borrowers of the same area where they’re at, while some have a stricter set of criteria.
That’s why it’s important to shop around to discover their differences and similarities– this includes their loans and requirements in order to qualify for a specific loan.
Most nationwide rehab investor loans offer more than smaller group private lenders. Thus, they usually give a better offer that doesn’t only surpass the banks, but the private lenders as well.
Identify Which Ones to Avoid
Lastly, aside from being familiar with the top hard money lenders, it’s also important to familiarize yourself in regard to the kind of loans you should avoid. You don’t want to get entangled into complicated problems in the near future. One of the most common problems a lot of people face is that, some lenders charge a certain fee for early repayment. You have to know that not all do this, and that’s why you should look for one who doesn’t.