I recently had a few calls about how hard it is to obtain hard money loans. Ok, let’s face it, recently is just about every day. A few calls you can pick a number between 500 and 50,000 and it will be somewhere in between there. But, really there isn’t much more to it, in some cases less, than the necessities that would be asked for by conventional lending.
“If you build it, they will come.” Ok so a lot of us know that Kevin Costner did not make any relevance to real estate whatsoever in Field of Dreams. The biggest hurdle seems to be experience, down payment, the value in the deal, and sometimes even credit. Instead of making that a road block and saying it can’t be done, why not just think of how can it be done. Ah, now I’m getting to the inspirational threshold. Believe me I am not an inspirational writer or speaker. Maybe once when I had to rally troops to win a competition, but that was a lifetime ago. Issues with credit, there’s credit repair specialists. Down payment problems? There are options where people wholesale real estate to come up with down payments, borrow down, find ways to use lines of credit creatively, use their ROTH, 401k, goodness the list goes on! And it wouldn’t be any different than when they would buy a house for themselves. Can’t find inventory or don’t know how? Wholesaling for the win! Talk about GREAT practice and knowing things about the markets that they wouldn’t even know were there!
…..And what about the good old powerful NETWORKING. There are so many investors out there actively looking for joint venture partnerships. Some are “angel investors” that actually look to bring in someone under their wing to help them get on their feet so that they can start qualifying for these loans. And guess what, with more experience comes lower interest rates! Your hard money lender doesn’t have a program like that? Well, you should probably give me a call.