Monday, May 13, 2013

Loans-Hard Money




Do you need a short term loan to make your goals a reality? Flip those houses for huge returns, but its impossible to get a bank to listen even though they lend money on more risky ventures?Our current real estate environment holds the greatest wealth opportunity of our lifetime.You just need to take advantage of it. But how? How do I get financing in this environment?
What you need is referred to as hard money. It is a short term, higher than bank-type interest rate loan which is typically secured with real estate. These loans are usually six months to a year with an extension built into them with an interest rate of 15 to 18%. In certain cases this rate could be lower. Banks won't touch this type of loan even when your returns in flipping houses are much higher and the risk is much less than other loans they are making now.
There are so many opportunities in high value areas with foreclosures at rock bottom prices. Such places as California, Arizona, Florida, Atlanta and Las Vegas. These places have homes with after repair values (ARV) of three to five times the current as is prices. You can literally multiply your purchase and rehab investment by 3, 4 or 5 times. In places like Atlanta you can actually buy houses for $10,000 that previously sold for $200,000 in the recent boom. Now, they are worth closer to $80,000 after repair (ARV) which is not as good as $200,000 but that is still an 8 times profit. In California, Arizona and Florida you can buy houses for $100,000 that have an after repair value of $300,000 for 3 times your investment. There are literally opportunities everywhere you look. Some are not as good as these examples but still viable deals with huge returns. You just need to take advantage of them.
Ultimately, to grow your business and captivate the maximum returns from your investments you simply need to be able to submit your opportunity to thousands of private lenders. Quickly, painlessly and efficiently with lenders competing for your opportunity because they understand the limited risk and potential return. But imagine a world where thousands of private lenders not only see your opportunity but understand it and compete for it.

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