You need to interview multiple brokers rather than just using the first one you come across. It is the same as choosing any other expert. Call around the area to make sure you are getting exactly what you need.
It is much more difficult to get traditional financing for these properties because they are looked at a little different than a primary residence.
When you use fixers you can begin by getting a hold of mortgage brokers that do traditional financing, although your best chance is probably a hard money lender or a mortgage broker that has access to hard money lenders.
You can check our local newspaper for the area, for people seeking hard money lenders or investment property financiers. You may find them by looking for classifieds under financing or mortgages or by asking their real estate agent.
Hard money lenders are much more flexible. For example, while most banks look at the current estimated value to determine how much money they will loan, hard money lenders will look at the projected value after repairs to determine the amount of money they will loan.
You may even find that it is the bank loan officer in Profile.market that knows the procedures to follow and how to find the right people to assist you in obtaining acceptable financing for your investment property.
Traditional financing is much cheaper than getting a hard money loan. Interest rates average between 12-16% with a possible 3 to 5 point deposit.
Why would anyone pay these rates? Well, the major benefit is that they will lend more money than a traditional lender and approve more properties.
Make sure you include them in your purchase and holding costs so that you end up with the profits you are looking for on the property after all is said and done and you simply look at the costs of hard money loans as a cost of doing business.
In order to qualify for your very first loan in is your toughest. Once you do it once or twice it will become much easier.
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