This topic contains 3 replies, has 2 voices, and was last updated by Insource Funding // Jerry Starr 1 year, 3 months ago.
How safe are hard money loans and what are my chances of approval?
Hello. For years, I’ve been interested in flipping homes. I have great handyman skills and have owned 3 personal properties, but never investment properties. i am already in the process of looking for my first investment property to flip or rent, but most likely to flip. I am already working with someone at Lendinghome.com. I want to start small with something low risk for my first investment. I have around $40,000 in cash reserves that I am willing to use in my first deal. My question is, Do you think Lending home is a good place to start? Hard money loans seem a bit risky, but I do have a good cushion in case it takes me longer to get the property ready to sell. I wish I could have started doing this a long time ago and I just need a little reassurance. Thanks. William
Hi William: It sounds like you’re off to a great start already. Your handyman skills should help with your renovation budget and your timeline. Lending Home is one of our recommended lenders. They’re a nationwide, reputable hard money lenders that works with investors. It’s also great to hear that you have a cushion becuae, in my experience projects usually go over budget and past your timeline, especially when you’re first starting out. Check out our article on how to start a house flipping business for more tips, and let us know how your fix and flip project goes.
All the best,
Lendinghomeis a great place to start like Allison mentioned. I wouldn’t be concerned about the” risky” element of hard money, its a term that is thrown around and people shy away thinking some wise guy will break their legs if it isn’t repaid. basically it’s been labeled hard money because the risk of providing such loan, and higher interest rate, on the flip side they have the flexibility to underwrite and approve loans that banks wouldn’t consider and close faster than any fdic insured institution.
congratulations on your first flip, being that you already own a few investment properties your ahead of others that are just starting out, like Allison mentioned, lending home has some great products and would be a good place for you to start. I wouldn’t be worried about the” risky” element of the loan, one advantage of using hard money lenders is they have the flexibility to make underwriting decisions that banks wouldn’t consider. Example, approving someone with low credit, foreclosures, little to no experience quick closings etc….Good Luck