If you want to be a successful Real estate investors in today’s market and make alot of money then you have to be smart about how to run your business. You want to make sure that you don’t lose houses because you don’t have private money lenders or investment property mortgage loans in place. This problem is easy to overcome though, just read this article and I will share tips about getting private money lenders and investment property mortgage loan companies to fund your deals.
Real estate deals which require an investment property mortgage or rehab loan have 3 pieces, this is the primary thing to remember. At the outset,you need to know how much the After Repair Value or how much the house will be worth once it’s fixed up. Then you must know how much money it will need to fix up the house based on a contractors estimate of repairs (Fix up costs). And last, a private money lender or rehab loan company will want to know your buying criteria which lead you to the offer price.
Being a successful investor will require that you relay appropriate information to the rehab loan company or your private money lender. The basic process will be for you to determine, by looking at active, sold and pending sales data, or comps in the area. This will help determine the After Repair Value. The private money lender will only lend you a certain percentage of the After Repair Value.
The next piece of information your private money lender will want to know is how much money will it take to fix the house up and who is on your construction team. You need to develop strong relationships with quality construction crews to build confidence with your private money lender or rehab loan company.
Based on your buying criteria and assessment of risk, you will then need to establish your offer price for the house. Every real estate investor has their own buying formula based on their experience level and ability to fund their deals using private money lenders and rehab loans. You need to establish all of these items as mentioned in the article. Check out our educational report on how to attract private money lenders for your rehab deals at www.attractprivatemoney.com
Learn more about attracting private money. Stop by Travis Bontrager’s site where you can find out all about sources of private money and what it can do for you.