HARD-MONEY LENDERS! A Viable Option for Investors, No-Doc Home Buyers?

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Real Estate Agent with Dean's Team - Keller Williams Realty Partners Chicago IL

Primarily a question here for those familiar with the hard money lending arena.  Lenders, please!

In the past, here in the Chicago area, several investor clients of mine have tapped hard money loans, from private investors, for buy, rehab, and flip projects.  If the properties flipped quickly, in an appreciating market, higher than market fees and increased rates could be absorbed.  Sometimes, if they had to hold, or in a stable or slightly down market, they got stung.

The hard-money option helped many investors that would have otherwise would not have been able to use conventional financing.  Some clients were considering exotic, off-shore or European banks for financing - but we never closed a deal using one of those mortgage loans.

An article in the January 13th Edition of the Chicago Tribune, by Wall Street Journal Reporter John D. Opdyke, indicates growing interest in private-money, or hard money, financing.  He sees relevance as well for certain individual home buyers - perhaps those going no-doc, or those rehabbing distressed property for themselves, later planning to re-finance at a more competitive rate.  We also have a posting discussing this on our BlogChicagoHomes.com Chicago Real Estate Blog Center.

Would love your thoughts and referrals here!

DEAN & DEAN'S TEAM CHICAGO

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Rainmaker
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Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

Instead of doing a hard money loan, some of those borrowers might be better off applying for FHA. Hard money is good for high debt ratios, but if the hold back is just bad credit -- hey, go FHA. Great rates, easy qualifying, and no stringent home repair requirements. I predict FHA loans will bounce back.


January 17, 2008 08:09 PM #1
Rainmaker
362,833
Dean Moss
Dean's Team - Keller Williams Realty Partners Chicago IL - Chicago, IL
Dean's Team Chicago IL Real Estate Team

Elizabeth -

Thanks for the comment!  I think you're right about FHA.

DEAN & DEAN'S TEAM CHICAGO

January 17, 2008 08:46 PM #2
Anonymous
Anonymous
Dean Miller

My name is Dean Miller.  I am president of pacific Northwest Mortgage services in Seattle Washington.  I am currently looking  for Chicago  area   Hard money lenders to fund local projects .  I can be reached at (425) 427-2969 My e-mail is deanmiller@pnwms.com

Thank you!!! 

February 14, 2008 11:59 PM #3
Anonymous
Anonymous
CommercialFundsOnline.com

We do commercial hard money and other funding throughout the US.  We love to work with brokers, and protect them.  With our access to private money, we have a lot of solutions where your typical lender falls short.  Please review our website http://www.commercialfundsonline.com/ or email me with scenarios you would like reviewed.  jbullman2@bresnan.net

As well, feel free to peruse my blog at http://creativebusinessloans.blogspot.com/

March 12, 2008 10:15 PM #4
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Rainmaker
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Dean Moss

Dean's Team Chicago IL Real Estate Team
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