Foreclosure University
Your Online Real Estate Investing Resource
A few months ago, I surveyed my list asking them about the challenges they were having with investing in real estate. One of the biggest challenges they were facing was that they didn’t know where to get the money to fund their deals once they found a great deal.
So I want to talk briefly about transactional funding and some other ways to get funding for your deals. [Read more…] about Transactional Funding
Question: I have someone who is willing to give my husband and me a hard money loan but wants a $7500.00 deposit. Is this typical for this type of loan? We are just learning about this type of loan and we have no up front money to put out. That is why we were looking at this type of loan. We were very disappointed to hear this. Are there other hard money lenders that will not require any up front money? Billie
Answer: – Yes and No. Because of what’s happening in the economy today, more and more hard money lenders require “skin in the game”. Especially if you are new to the investing game and don’t have a relationship with the company yet. It’s getting harder and harder for individuals to qualify for loans. So yes, many hard money lenders require something. However, there are some still out there that will lend based on the property along with financial’s and credit. The challenge is finding them. One of the best things you can do is visit every title company in your area. Find the best escrow officer from each title company and see if they have referrals. Investors always find the good title companies with creative escrow officers because it makes our jobs easier. Many investors have money and are always looking for good deals. Talking with the right escrow officer will help you find the perfect hard money lender to help you. And a lot of the time, it’s all word of mouth or referral so you can’t find them in the yellow pages.
I recently lost a deal due to lack of funding. The house wasn’t on the market yet but the owner had already moved out. While trying to find her, two days later, the property hit the MLS for a price of $21K. I couldn’t find a lender who’d do the loan. I don’t want this to happen again so I need to line up a hard money lender (hml) but what questions do I need to ask?
Also, is it unusual to need $5k before most hmls will fund a deal?
I’m in Missouri
Thanks,
StLInvestor