Most of the time, depending on your situation, hard money Mortgages can be a great way to finance a specific real estate investment but the Mortgage application process can be quite different from traditional bank Mortgages. There are some different tricks and tips for you to learn.
First, find the right project. Arizona hard money is collateralized with the property in question so finding the right one is very important. A property valued in the right range may not be in a very suited suburb. Remember, rule number one is avoid the crack houses – even if you flip a mansion, no one wants to live deep in the ghetto. Just like you, hard money lenders want to know that the property and the location are a safe investment.
Also, always have an exit strategy. Hard money Mortgages are typically short and usually just a few years in length. The lender will want to be reassured to know that the borrower has a solid plan for either selling or refinancing the property way before the term is up. Knowing how you plan to repay the Mortgage is a key factor in a hard money lender’s decision. If you are doing this all wily nily, you’re going to look bad in the eyes of everyone and no one wants that. Don’t jerk your lenders around. You wouldn’t want that done to you.