You need to interview multiple brokers rather than just using the first one you come across. You should approach choosing a real estate agent just like you would hiring an attorney, doctor or insurance agent. Call around the a place where you will have access to meet your financial necessity.
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 working on fixers you may want to consider seeking a hard money lender for financing rather than a traditional mortgage broker.
Read the local paper in the Profile.market area, and you can find financing options and alternative mortgages here as well as through your real estate agent and via investment property finance firms.
Hard money lenders are willing to loan between 50 and 80% of the value of a property after repairs, whereas traditional lenders will only loan based on a property’s current value.
It might be a local mortgage banker in Profile.market that knows exactly ho to call in any investment situation.
It costs a lot more to get a hard money loan than it does to finance traditionally. Basically interest rates average about 12-16% in most cases and you might have to pay about 3 to 5 points right now.
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.
All you have to do is look at the costs of hard money loans like the cost it takes to do business. To end up with the profits that you are looking for on a property, make sure to include those costs in your purchase and holding costs.
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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