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Hard Money Lenders are Your Friend

If you are going to be a serious real estate investor then you need to make friends with a few hard money lenders. Real estate investors must have cash available to buy homes fast. If you have to wait for a loan you might miss a good deal. There are several advantages of using hard money lenders over traditional lenders and your own cash.

Hard money lenders have readily available cash for your deals. If you have cash available to buy homes you will get better prices and more deals. If you can tell a seller that you can close within a few days then you will be able to get their respect and they are more willing to discount the asking price. I know that many banks that sell their REO's will sell them at a discount for cash buyers than if you have to get financing. Cash is king in the real estate investment world.

Hard money lenders don't require tons of paperwork. Most hard money lenders have a short application and don't require anything but a property. I can't stand to fill out paperwork for the traditional loans.

Hard money lenders don't charge a ton in closing cost. Sure they will charge more interest and some fees but most of the time the money is easy to get and doesn't require much of your own money. Don't waste your profits on application fees.

Using hard money lenders doesn't put your credit rating at risk. Since you are using private lenders they normally will not report you to credit boroughs when you are late or default on the loan. Basically you have little risk.

It is better to use someone else's money and not your own when making an investment, so find a few hard money lenders that want your business. Hard money may cost more in interest payments but it's not my money.

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Source: www.isnare.com