Financing and Credit

I just got this e-mail from a certain "Private Funds" program. These are the first two paragraphs.

"If you've been following the news, you know that the credits markets are frozen. Banks aren't even lending money to other banks and even with a bail-out it could take months, if not years to everything straightened out.

Whether you're an investor, a real estate agent or a home seller, you need "Private Money" to get your deals done."

Any thoughts?

There have been some wondering about hard money lenders during our current economy. Will they change? Will they stop lending?

There are basically two different types of hard money lenders: conventional and private.

Conventional hard money is usually tied directly to banks. In fact banks may have brokers brokering their money under the terms hard money. These types of companies will most likely be effected. They may stop lending all together. These are often the hard money lenders found on the internet.

When you bring a deal to a hard money lender he will tell you what he will be willing to lend. If you have offered or intend to offer too much he/she will let you know how they came up with that value. So, don't forget to listen to a hard money lender, because they can vindicate your offering price or they may disagree based on their appraisal of the property.

Hello,

Does anyone know of some hard money lenders or investors in the Louisiana area. I am really interested in become a real estate investor and the first place I am trying to start is the home I live in now. I am trying to purchase the property but, I am having trouble getting financed. I am what most investor's would call a very motivated buyer. LOL! If anyone one can or is willing to help me I can be reached at [email protected]

Thanks in Advance for all your help,
Troy

Hi everybody,
Me and a friend of mine have decided to buy a house on foreclosure. The deal seems to be good: the house was bought in 2006 for $635,000, is now for sale by the bank for $350,000, and its value today is arround $550,00.
My friend gives half the money in cash, and I intended to get a mortgage for the rest ($175,000). I have good credit and the bank approved.

Hello All.

Newbie here, who's been reading a lot on this site and majority of the book. Thanks to all you have provided their examples.

I've found a great REO (Bank Owned after unsuccessful foreclosure) up for sale, $75000. Local Property Appraiser site and Zillow.com (shows estimates of property and overhead shots of property) show equity at $165,000. I will be a 1st Time Buyer and would like to pull equity out at the original closing.

Is it possible to pull 40k in equity out at closing?

Is this happening in all states or just Arkansas?
How will this affect those of us who are investors?

FHA Payment Assistance Ends October, May Hurt Buyers

A major piece of the federal mortgage loan program is coming to an end and it could affect the way you buy or sell your next home.

On October 1st the federal program that allows home sellers to assist buyers with closing costs and down payments will end and would- be- borrowers looking to cover their down payments will have to look at other options.

LENDERS TAKE MANY FACTORS INTO CONSIDERATION WHEN TRYING TO FINANCE DEALS. WHAT A LOT OF LENDERS ARE LOOKING FOR(ESPECIALLY HARD MONEY LENDERS), IS EQUITY. IF A PROPERTY HAS AN LTV(LOAN TO VALUE) OF 65% OR LESS, YOU CAN GET FUNDING FOR YOUR DEALS.

IF YOU HAVE GOOD CREDIT THEN GREAT. I KNOW LENDERS WHO WILL FUND YOUR DEALS EVEN IF YOU HAVE 520 CREDIT. YOU SHOULD DO YOUR HOMEWORK AND LOOK FOR DEALS THAT HAVE EQUITY BUILT IN. EVEN IF YOU DON'T MAKE A LOT OF MONEY AT YOUR JOB OR DON'T HAVE $20,000 TO PUT DOWN, DON'T BE DISCOURAGED!

So my best-friend is moving from Virginia to Phoenix to join me in my real-estate affairs. We think we may have found 'THE' house for our first investment. As of right now it is in need of some minor upgrades & could be worth a fortune once the housing market goes back up to into a positive cycle. That being said, we are trying to figure out the best solution as far as payment is concerned. We are NOT going above $50k as far as selling price is concerned, but have assessed there to be approximately 10-20K necessary to bring the house back up to its original market value of $185K.

Points:
- Hard money vs. Private Lenders vs. Mortgage Brokers
- Hard money lenders are creative because they are private
- How hard money normally work and can work
- What to look for in hard money lenders
- How to find hard money lenders through various means.

Hard money vs. Private Lenders vs. Mortgage Brokers:
- Hard money lenders are lenders that are private companies or people that use their own money to invest in real estate. They are currently investing in real estate and know what they want to lend on.