Being into real estate investments as a hard money lender I found that there are so many real estate investors that are running so many hypothetical situations with different property(s). But as a matter of fact these imaginary situations are never going to get you real money. You might have a great plan for investment properties in a certain county, neighborhood, or street, but no one is going to be interested in committing Rehab Loan until you can plug a real property into the scheme and propose a real concrete deal. If you provide a lender with hypothetical analyses, the best he can give you is some talk about hypothetical money. If you really want to make money as a real estate investor, then go find properties, indeed you need to find good deals, and put good deals under contract. Once you find good deals, finding a Rehab Loan is the simple part. We have seen brilliant investors who suffer from “analysis paralysis,” working up complex spreadsheets before they would make an offer or even look at a property. Bring your ideas into the real world if you want to see real money.
I know it is frustrating when a lot of lenders out there will not make any commitment for Rehab Loan. They won’t even let you know what counties they will lend in, what states, or what prices they are offering you. They won’t be forthcoming with any information at all. All they will tell you is just bring us the deal, and we will see. A lender should tell you what they are going to charge, what areas they are willing to service, and such other basic parameters. Do you know what type of properties they will finance? Will they do commercial loans or multi-unit properties, or will they only do single family dwellings? What price range can a property fall into, and what charges do they add on? I think that is critically important information for you to know.
If you are working with a good hard-money lender, you can get that information easily and make sure you are within their general guidelines. Good hard money lenders will post their policies, terms and conditions for Rehab Loan right on their web site for the world to see. This will make it easy for you not to have to waste time making phone calls and “interviewing lenders” You can get it all by the click of a mouse.
Again I am not talking about analysis paralysis. I am talking about general, overall guidelines of what to look for. I can tell you from my own personal experience, I believe that you should be looking for single-family homes in major metropolitan areas under 0K. That’s my belief because I am convinced that when you find homes that meet those guidelines, you will be able to get Rehab Loan on them very easily—as long as you purchase the property for the right price. So when it comes down to it, just find the deal and you will find the money.