Many of us are thinking about becoming real estate investors these days, because they see the opportunities that are out there.
You can buy foreclosed homes or homes that are in a short sale process for half a price in some cases.
So how you get in the game when you are in a mess your self, but you have some cash saved up and is ready for use?
Many don’t know how to be creative or they are just full of mess that they can’t think about their next step. Have you ever heard about a hard money loan?
Well hard money loans are loans done by private investors. Hard money lenders are willing to help real estate investors and homeowners even if they have low income and bad credit to no credit. They are willing to take the “risk” or trusting you to pay them back their money.
While banks will not qualify you, you can always find a good hard money lender to help you purchase a foreclosure or a short sale and get in the game.
What hard money lenders want in return?
you will need to put at least 35% down payment
You will need to repay them their money within a short term of anywhere between 6 months to 2 years.
You will need to pay higher interest rate. starts at 9% up to 15%
You will have to pay 3 points to 7 points upfront in order to get the loan.
As you see there is a price for everything, but if you will purchase a foreclosed property and have the option to make $50,000, is it worth you to pay $10,000 in fees? I think it’s a great deal you should consider.