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Making Rehabbing Profits Through Private Money

by Daniel Mc Grey on Nov 19, 2009

Private money is a staple form of financing among rehabbers and other real estate investors. Also known as hard money , investors prefer this funding over traditional loans for many reasons. A lot of investors use private money because is allows them toproceed with a deal without spending a single cent from their ownpockets. While this does not happen all the time, chances are you willbe able to buy a property to rehab and then repair it using only hardmoney. The trick lies on how private money loans are computed. Lenders basethe amount they will release on the ARV, or after repair value of theproperty. This is the value of the property after you rehab it. Youwill get between 60% and 70% of the ARV and this amount is usuallyenough to cover the purchase price and the repairs costs. In somecases, you can even pay for the closing costs using the money. You can study the sample computation below to see how this works.Let’s say you found a $90,000 single family home and you want...Read More >>



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Must-Knows About Private Money

by Daniel Mc Grey

Private money can help you become a successful real estate investor,especially when you are just beginning in your career. But before youengage in transactions with lenders, here are some things you must knowabout private money . Also known as hard money, this financing is ideal when it comes to real estate investing .This is primarily because it is easier to access compared totraditional loans. Unlike banks and other traditional lenders, privatemoney lenders take just days to process applications. This is veryhelpful to real estate investors, especially at a time when competitionis...

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