Real estate investment is a very wide field and it allows all of us to be in a place where we can get highest level of profit. The field had grown to such an enormous size, owing to the different types of lenders. There are traditional lenders comprising of banks and other lending unions. Then there are soft money lenders and hard money Lenders. There are number of differences in the working of these agencies. Rehab Loans are actually a unique option of funds by only Hard Money Lenders. Well! On the whole it has become much easier for people to get started in business with all new hopes and desires.
Anyone who wants to get loan from the conventional lenders like banks must have a patience to wait for almost a month for the approval of funds. They are going to scrutinize all of your bank account, your job earnings, tax return and credit scores. Then they keep on analyzing all of your fiscal documents and it takes much longer time than usual. Then they reject so many loans application on the basis of incomplete data and not able to pay down payments and regular installments. These conventional lenders just sell their client’s title to some other parties and get their commission charges only. Then they don’t give Rehab Loans to their clients as they believe in retail purchase and sales. These lenders would never offer you easy way loans for your benefit and growth, but something which is based on their concept of growing big in business.
Then there are another category of lenders who call themselves as soft money lenders. They actually give direct money to the lenders but they also look at the financial details and credit scores of their clients. But they avoid giving out rehab loans which is a special feature of hard money lenders. They also ask for down payments and installment kind of things. They also sell their client’s information to third parties. But still they are easy to approach as compared to banks. The borrowers have some advantages while working with these lenders. The third and most important category is Hard Money Lenders. They give their own private money to their borrowers and they ask for nothing except good property deals.
Well! I am not telling an imaginary tale but these hard money lenders are seriously doing great job in Real Estate Investment Business. They do not ask for typical financial statements and they only ask their clients to select a good profitable property. Being a real estate investor, you need to think about marketing perspectives of your desired property. You need to assess the kind of repairs and additions that are needed on that property. They don’t depend on down payments and regular installments. These lenders ask you to get Rehab Loans and prepare an old property for setting out new in market. They ask you to go out in market and search for old house in wholesale market, and then they can give you loan to purchase that one. You can work over it and rehabilitate for reselling purposes.