Most real estate investors depend on certain private hard money lenders for their source of funds. But getting the funding for various property investments can be difficult if you approach the wrong loan provider.
Now everyone knows that this is a tough real estate industry to be a supplier, but if you recognize that fact then you also have to know that this is one of the best times in recent memory to buy a house. The key to buying a house in Connecticut in this market is to use a good cope, settle an excellent sticker price and buy the house with as little cash up front as possible. On the other hand, the most important error you can make is to love a house that is outside your range of budget and put a fortune down just to afford it.
If you are in this same situation take advantage of the lower Connecticut mortgage interest rates and the down payment assistance programs to keep that cash in your own pocket because the advantages are huge. You get the tax advantages, growth in equity over the years and the pleasure of having something that nobody can take from you unless you let them. More importantly, the best reason may have nothing to do with you and everything to do with your kids. Imagine what it would feel like to pass on financial freedom to your kids so that they do not have to work nearly as difficult as you did just to break even.
If you can lend enough money to buy the property, fix it up and then sell it under industry value for a profit, then you’ve just made cash without any of your own cash. Sure it will be expensive for you to gain access to that cash, but the benefits out way the expense.
How can you discover hard money lenders? There are thousands of hard money lenders waiting to lend you money. It could be your next door neighbor. Talk to a mortgage company and ask for referrals and it is the best way to find hard money lenders. You can also call a title company or a property company. They deal with consumers of homes every day. Shop around until you discover the best one that will fit your needs. Search online and find hard money lenders. Some will offer nationwide – these typically want a credit assessment. If you choose a challenging hard money lender in your area, they may just do a drive by.