Over the next few days I’ll be posting comments about 6 common mistakes or misconceptions too many investors seem to have about hard money loans for residential investing. I hope you’ll find them helpful, and don’t forget to watch for our other posts about rehabbing fast for maximum profit!

Mistake #1: Not Using Hard Money Lenders

When I first started my real estate investing
business years ago, I was not at all enthusiastic
about borrowing money from hard money lenders.

Let’s face it, at first blush, the rates seem pretty
high compared to banks, and aren’t people who
have less than perfect credit the only ones
that get these types of loans?

Well, it took me a lot of time trying to find
other sources & the painful experience
of working with banks before I came to
the realization that ALL good investors come to
quickly in their business:

IT’S NOT THE COST OF THE MONEY,
ITS THE ACCESS TO THE MONEY THAT
MATTERS!

Nothing new there, but it’s the truth. Too many
people spend so much time trying to find the absolute
cheapest source of money to fund their deals. If you
quick-turn real estate, it doesn’t take you long to realize
that there is actually not a very big cost difference
in using conventional funds vs. asset backed loans (ie
hard money loans). Not to mention the fact that many
of the rehab deals you’ll buy won’t meet the criteria
for conventional lending simply due to the condition
of the property.

So the question is, what do you want to spend your
time doing, looking for funding or looking for deals
that are going to put big fat checks in your pocket??

Asset backed loans are a great way to have a
consistent source of funds to grow your business
quickly, and help you focus on your most important
activities.

Until next time,

Adam Arnette

www.WeFundHouses.com

P.S. If you haven’t already, make sure you sign up for our chock-full of info, no-fluff newsletter at www.WeFundHouses.com