In most circumstances, working with private money lenders is a lot easier than traditional financing. To apply with a private lender, make sure that you have already found the property you want to purchase, renovate or flip.
It is critical to have collateral, and the lower the LTV (loan-to-value) is, the better the rate offered will be, and the likelihood of being accepted by the lender increases significantly. The higher the collateral the better the loan rate becomes.
The next step is to find a hard money lender; contact a verified private money lender such as Lightspeed Lending.
On application you will need to provide:
- What is the address of the property?
- What is the agreed purchase price (note: the purchase price is not an appraisal value) of the property?
If applicable you may need to provide:
- What are the estimated construction costs?
- What is the expected value of the property after construction work is completed (ARV)?
- What is the repair costs value?
The loan provider will validate the request and then, if successful, the lender will make an offer to the real estate investor.
The more experience you have with hard money programs and in the real estate market, the more likely you will be successful in the application; however, everyone has to start somewhere, and working with a hard money lender is often an easier and quicker option than a traditional mortgage.
Hard money is not available from the same places you procure traditional loans; instead, you require a direct hard money lender. Hard money lenders can be individual private investors or small businesses like Lightspeed Lending in Stockton, CA.
It is important to take your time to research the best private money lenders to make your loan successful. Each provider will have different qualifying criteria and different terms and conditions for their loan product.
Conduct research on the various Stockton, CA vendors to learn what the minimum credit score requirements are, what the minimum and maximum property values are, and what level of loan to value (LTV) is available.