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05-17-2007, 10:38 AM #1
Renter
- Join Date
- Mar 2007
- Posts
- 8
Private & Conventional Lending
[FONT=Arial][SIZE=3]I
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05-17-2007, 11:35 AM #2
Condominium
- Join Date
- Mar 2007
- Posts
- 199
"[FONT=Arial][SIZE=3][I]for example, she doesn
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07-31-2007, 06:25 PM #3
Fixer Upper
- Join Date
- Jul 2007
- Location
- Ft.Sill, OK
- Posts
- 18
Great post guys. Two great points of view. I'm not too experienced in real estate but I know a little bit. Seems like there's so many variables. Keeping the property for only a short period of time like Tim said seems to be better when borrowing from a hard money lender. From what I understand, most of the private lenders give 6-12 months terms anyway. Also, subcontractors can make the process better. I the subcontractors are getting the job done in a timely manner because they want that check... I don't see why you couldnt realistically have the job done in a matter of weeks. Ofcourse you would be paying the subcontractor with borrowed money from the private lender who will inspect the work before payment. Also, you should have an option to "roll" the monthly payments into the loan amount if you can get the property at a great price. Most Hard money lenders won't lend more than 70% of the ARV. If you can get the property for even less... say another 10% off... that could easily pay for 6 months of monthly payments once you do the math. With a good system in place, knowledge of how hard money loans can help AND hurt you, and some focus... hard money can get you on your feet in real estate. It's funny because I have never even bought a house before in my life. I'm only 22. I just have true faith in that process and I'm going to make it work... that's a promise!
Sean Davis - Active US Army/New REI
http://www.thefutureconsumer.com
http://www.successonmymind.com
POW-MIA you are not forgotten...
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