Essential Components of Private Money Lending Services
Posted on August 17, 2010 - 08:07
Today, I want to talk to you about some private money lending services and private money lenders when it comes to hard money lending, we specifically need to talk about a few but very important partakers of this business domain.
It is often said that we make money when we buy a property and we realize that profit when we sell the home. So money will be made only after finding a good property, which I believe is a real estate agent’s goal. They provide you as a real estate investor a list service that is going to aggregate the information. While you are having a list service that means you are not sold by owners real estate agents are going to find stress sellers. Real estate agents are going to find bankruptcies, state sales, foreclosure, oriole homes, short sales, and also anybody that is in distress situation, judgments, weaned and aggregate that information pull contact information and then deliver that to you. It is list of aggregator and specifically a foreclosure list aggregator, which is going to be important to help you find a property. In addition to that a real estate agent finds and sells property as well.
Another essential role is of an insurance broker, an insurance agent; because when it is the time to purchase a property one of the hard money services that you need the surety of someone that you can get coverage when it comes to insurance on that property. You will see most insurance companies won’t lend on a vacant home. Now the broker may say that they will look for it but they have not yet and being present in the same industry for almost a decade, we have seen that most insurance companies won’t insure vacant dwellings because there is additional risk of no inhabitant. At this point, the insurance agent will be the one who will make sure that you find an insurance company that is confident upon a vacant asset/property. The insurance company can provide vacant dwelling policy. So an insurance agent should also be included in your hard money service team list.
The next person who must be included in your service team list is a home inspector. I think it is really important to have a home inspector to inspect the property as you need to go for private money loans for your investments. Mostly, what happens is that real estate investors go out to observe the property and kick the bricks and only see if things stand up and look good. They may also have their handy man or their contractor for an analysis but the contractor and handy man is actually bias as they want to do the job. So even if there is something going on they are not totally motivated to make you aware of that because they can charge you later for additional repairs. But I think for a couple of hundred dollars you can get a good evaluation done on the property by a professional home inspector. Couple of hundred of dollars can be worth it a lot of money in saving from a mistake.
The next thing that you need to have on your service team list is a contractor and a handy man. You have to have some reliable people to actually get the work done. They can go in there and even if you are doing work yourself you are still going to need to have a carpet guy or you are going to need to have someone that can lay tile or some one who is good at picking up the pieces and get the work done you might be missing out on.
Finally you need to evaluate your decision of investing in the property from another perspective and this can be done through an agent or can be done subscribing through a service and actually be able to have some one else take a look at your deal. It is good to have some one else take a look at it independently for an unbiased analysis.
Last but not the least is finding a hard money lender who is eager to invest for your chosen property. We private money lenders arizona are specialized in financing for lower end homes as our experience is spread out over a decade and we are confidently telling you that high end homes are taking a beating. Lower end homes are moving and that is important.
The first key person is a real estate agent. A real estate agent is going to help you in acquiring a property and also liquidating a property.