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REO Properties Bought With Hard Money Lenders Funding
By ContentAuthor | July 3, 2010
As more and more banks place bank-owned property for sale, a new breed of investors is snapping up these properties at almost ridiculously low prices. The LTV’s on some of these properties are as low as 25% of the market value and are being sold primarily to investors who are using private hard money lenders. Individuals purchasing owner-occupied housing is part of the REO properties which are now held by banks, it is apparent that the banks prefer to sell the properties at discount to investors because the closing and funding times are much quicker, making it more feasible for financial institutions and government agencies to recover loan-loss based on prior lending
Real estate investors approach these private rehab hard money lenders for funding based on the value of the property LTV. Hard money lenders are ready to loan because the extremely low LTV values comfortably reduce the risks associated with such types of loans. Since rehab hard money lenders are primarily asset based lenders, This type of match has enbled great progress for lenders and investors in the residential arena. However, it is expected that we will see more private hard money loans being made in the commercial arena as well in the near foreseeable time to come. The bank, governement and financial institution REO property has been bought and resolde at wholesale prices, reducing further levels in the housing stock list.
It is forecast that private-lending will continue to be a strong component in today’s housing market to to fund these types of deals as more and more hard money lenders enter the market. Private money is raised from investors seeking a well above average return by having the monetary resource loaned out on property that is securing the loan. The private hard money lenders programs differ from conventional bank loans in that the loans are made quicker, less emphasis is set on a buyer’s credit and most emphasis is placed on the value of the property asset and ultimately what the investor’s plans are with the property whether it be buy and sell or rehab and sell.
The Private Money Lenders Source has enabled real estate investors to use 300 of the top private hard money lenders in the nation who loan on residential and commercial investment property. These loans are being made nationwide, regionally, and locally by these private lenders and enable the real estate investor to deal direct. www.OPMCredit has been providing resources to real estate investors since 2006, and as the market has changed dramatically, new resources have been developed including the Hard Money Loan Blueprint, the Ultimate REO Report, and even a system for developing multiple streams of motivated real estate buyers.
Utilizing the investor resources that both seasoned and beginning investors now have available, the can apply to hard money lenders with confidence, knowledgeable that their loan packages are propertly prepared. More loans are approved when a lender receives a complete loan package that is prepared according to the standards for private hard money lenders. The Hard Money Loan Blueprint was developed by studying the programs of 300 private hard money lenders in order to assist real estate investors in submitting a better loan package. According to private hard money lenders, it is estimated that 50% to 70% of loan packages submitted by private investors are incomplete and lacking the documentation crucial for loan approval. The Hard Money Loan Blueprint has created a new standard for real estate investors .
Topics: Good Products | 1 Comment »
July 7th, 2010 at 1:52 am
I’m looking for deals to fund. Can you comment on that?