Rehab Hard Money Lenders (July 5, 2016) - www.hardmoneylenders.opmcredit.com-

In 2005, real estate investors were the darlings of banks and mortgage companies offering "no income", "no asset" loans for almost anyone who had a pulse or an investment property that needed funding.

Roll ahead to 2016….

Banks now lend only to real estate investors who have perfect credit and large down payments. It's not because real estate investors are doing anything differently. Real estate investors are still successfully "flipping" properties and the profits per deal have been substantial. However, the business of real estate investing has changed. Years ago, banks were funding purchase or refinance real estate investor deals with "little or no money out of pocket". Of course, those were the days when banks could shuffle these investor loans into bundles of mortgage-backed securities and sell them to pension funds and other institutional buyers and we all know how that turned out.

Today, banks will only fund real estate investors who have near-perfect credit ratings and large down payments. Few real estate investors qualify for loans due to the stringent underwriting guidelines of banks and mortgage companies Real estate investors, however, are once again the darling of banks and mortgage companies, but for a different reason. Real estate investors are buying bank owned and government owned properties. Known as "REO" properties, or "real estate owned", these properties are on the banks books as a result of the tsunami of foreclosures occurring in the aftermath of the Greenspan era of relaxed mortgage credit requirements.

By using private hard money loans rather than traditional bank financing, during the last ten years, real estate investors have been acquiring these REO and helping the banks, mortgage companies, and government agencies to get these REO properties off their books. Even so, the banks and mortgage companies are still carrying millions of properties in a "shadow inventory" which includes properties that have not been listed for sale. Real estate investors have been able to cash in on these investment REO properties by purchasing them from banks for pennies-on-the dollar. It is common for real estate investors to purchase these properties for 50% to 65% of the market value and sometimes for even a fraction of that value.

Real estate investors have discovered a new way to get financing for their buy and sell, fix and flip, and buy and hold deals-- private hard money lenders. Different than banks, these private hard money lenders and rehab lenders are asset lenders. The property rehab loans provided to real estate investors by rehab hard money lenders are based on the value of the property rather than the investor's credit, income, or assets. With sufficient property equity, these hard money lenders and bridge lenders can fund virtually all types of non-owner occupied residential property or commercial income property. Some of these lenders loan investors up to 100% of the purchase price and even lend rehab costs and roll costs and fees into the loan.

Hard money rehab lenders loan investors money based on the "after-repair-value" of the property, which means that the private hard money lender is able to lend enough money for the investor to purchase the property and even include the rehab costs in the loan. The investor then purchases the REO property, by using the money from the private hard money lender, and within a month the property has been rehabbed and is on the market for resale to a homeowner. These properties, in need of rehabbing, can then be purchased by new homeowners who don't the money or inclination to be involved with property repairs and rehabbing. The property is ready to occupy so it is a perfect match for a retail first-time homebuyer. Banks and mortgage companies finance the homebuyers with a traditional 30-year mortgage. When the deal closes, the real estate investor then repays the hard money lender and pockets the profit from the sale of the property.

Real estate lenders are also using commercial hard money lenders and bridge lenders to purchase income property such as apartment buildings, multi-family, mobile home parks, mixed-use property, retail strip malls, and other commercial properties. These lenders are able to provide loans for up to 3 to 5 years, enabling the real estate investor to buy and sell, fix and flip, or buy and hold a rental property.

About the Private Money Lenders Source:
The Private Money Lenders Source has provided lender program options to real estate investors since 2006. The Private Money Lenders Source has now released an innovative online database of lender program options specific residential non-owner occupied and commercial income property real estate investors and brokers to help real estate investors facilitate real estate deals. The new online database can be accessed by real estate investors using a PC, Mac, iPhone, Android, tablet, iPad or any mobile device with an internet connection. The database enables real estate investors to now have a mobile connection while pursuing new deals.

For more information, please visit http://hardmoneylenders.opmcredit.com/

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