Unlike “Pay Day” loans, title loans, or other similar fast credit options, homes loans for bad credit have practically ceased to exist since the onset of the crisis. Because so many people suffered blows to their credit scores as a result of the financial meltdown of 2008, getting a home loan these days is a dream. And with new laws passed in January of 2014 that define what “qualifies” for mortgage, and as it turns out, no one can qualify. Thousands and thousands of people are searching for home loans for bad credit end up wasting time searching in vain. So many companies promise they can qualify anyone for a loan program that sounds too good to be true. After lots of paperwork shuffle back and forth, many borrowers simply walk away frustrated after finding out they cannot qualify after all.
With our new private money mortgage program, we can accept borrowers with credit scores as low as 500. This private money loan program is the real deal for those who are endlessly searching for home loans for bad credit. The debt to income requirements for this program are also much lower than other lender. If you or one of your clients is having difficulty finding home loans for bad credit, this program may be the answer. Fill out a short contact form at this LINK and let’s see if you qualify.
Also, make sure you watch out for loan scams when searching for home loans for bad credit. If you are new to the topic of private money mortgages, read more on our blog on this topic called, ‘Hard Money 101.’ Avoiding popular scams in lending is at the top of the topic list so take a few minutes to read about this before starting your search for home loans for bad credit. Because there are so many ‘loan sharks’ out in those waters, do a little research on our blog first so you can learn how to avoid them.
Posted by Corey Curwick Dutton
It’s amazing what a real estate rehabber can do for the “dog house” in a neighborhood. Last year in our own neighborhood, a real estate investor purchased a dilapidated home that was previously owned by an aging couple. The house was had extreme deferred maintenance and needed at least $100,000 in rehab to get it back into shape. Within 5 weeks, the rehabber had turned that “dog house” in our neighborhood into one of the nicest homes on the block and resold it for top dollar.
These are the types of real estate investors that we lend money to do these types of rehab projects. I’m always impressed to see the final product. But how and why are some real estate rehabbers able to fetch premiums for properties they fix up and later resell? Because we are a real estate lender and are able to see some of the “tricks of the trade” of our real estate investor clients, we would like to share them here. Here are 4 reasons why real estate rehabbers can resell a property for a premium:
1. A Knack for Finding Niche Neighborhoods: Real estate rehabbers have a talent for finding properties in the most sought after neighborhoods where property listings last days or weeks at most. These are the opportunities for the highest price premiums.
2. Home Staging: Dressing up a vacant property is shown to yield price premiums. The elements of design, style, and visualization are strong factors here. Check out a recent blog post we wrote for using home staging to sell a home fast and for a premium: http://privatemoneyutah.com/hire-home-stager-help-sell-home/
3. Addition of Modern Elements: Real estate rehabbers tend to focus on adding modern elements to a home to get price premiums. Some examples include: Addition of shingle siding or slate stone on exterior walls in sections around stucco or wood siding, addition of contemporary outdoor and indoor light fixtures, designer paint colors on exterior trim and walls.
4. Patience is a Virtue: The turnaround time on a real estate rehab varies greatly by project. Depending on the season, weather conditions, and current market conditions, a property may take longer to sell than anticipated. The most successful real estate rehabbers are able to get top dollar because they are patient. I’ve seen properties take as long as 10 months to sell. Properly budgeting for holds as long as this can allow a real estate investor to fetch a premium by waiting for the perfect buyer.
Thinking of selling a property this year? If you want to fetch a premium for the property, pay attention to some of the tactics used by the most successful real estate rehabbers.
Posted by Corey Curwick Dutton
Professional staging has been growing rapidly in popularity since 2005 as a tool to sell real estate faster and for top dollar. But if you’re thinking of staging a property for sale, with so many home staging “professionals” out there, how do you choose the right home stager? I’ve heard horror stories about bad stagers that wasted both the time and money for trusting sellers. Below are a few tips for hiring a professional home stager:
1. What is the typical staging fee?
Pricing for home staging begins at $150. The more services you require from the stager, the higher the cost. Typically the staging fee is separate from the rental fee for furniture, fixtures, and electronics. The staging cost includes styling and merchandising expertise. This is a one time initial fee and costs an average of $250 per room. The rental of furniture is in addition to the staging cost.
When determining a price to stage a vacant room, a stager will look at various factors including: size and layout of space, natural light in the room, how a room flows with the rest of the house, the intended use of the space, total areas to be staged, and the amount of wall space that needs art.
2. What would be a range for a monthly rental fee for FF & E? (Furniture, fixtures, and electronics) to stage various rooms?
- Living room $450 +
- Dining room $350+
- Bedroom $350+
- Office space $125+
3. Are there any upfront consultation fees?
If the property is vacant and a stager is providing a quote to stage the property with furniture, there is usually not a consulting fee in addition to the staging fee. But if you want the stager to provide a list of staging recommendations to work with the furniture you’ve already got, most stagers charge anywhere from $150 to $250 as a consulting fee. When a stager is pricing a home that is being occupied by the seller, they will consider additional items that sellers can add that would enhance the existing furnishings. A seller can pay rental fees for those additional items.
4. Is there a minimum rental term/time period required for the furniture rentals? e.g. 1 month, 2 months, 3 months.
Most rental companies require 60-day minimums on furniture rentals, while some stagers will allow for a 30 day rental. Most stagers recommend at least a 60 day minimum when trying to market and sell a property listed for sale.
5. Is there a delivery charge, setup charge, etc.?
Expect to pay a delivery/pick up fee. But the setup fee should be included in the overall staging fee. If the setup fee is in addition, you may want to see why it costs more on top of the staging fee.
Because there is so much competition in the high-end home market, some over the top tactics may not be necessary, but are certainly newsworthy. Here’s a link to an article on Mashable.com about a realtor who went to extremes to sell a house: http://mashable.com/2012/07/13/realtor-makes-sci-fi-movie/
Some real estate investors hire professional stagers while others do their own home staging. There are very successful realtors who hire home stagers to tackle their toughest homes to sell. And it works! Many times the realtors will actually cover the cost of staging the properties if it means selling them for more and faster. If you’re thinking of hiring a home stager to stage your next property, seek out recommendations from real estate investors or realtors who have used stagers before with superior results. It may be worth spending a little extra money to stage a vacant property and sell it faster, and possibly, for top dollar.
Posted by Corey Curwick Dutton
Do you have a commercial loan coming due sometime in 2014? Or are you looking for new investment purchases this year? Well, if you haven’t already started looking for various sources of financing I would say, make haste! The clock is ticking. Financing is always the hardest piece of the puzzle for any investment property purchase. And with a tidal wave of CMBS loans maturing this year and next year, those in need of a commercial refinance need to start looking now.
As best told in a recent article I highlighted on NREIOnline.com called, ‘How to Get Screwed When Buying Real Estate,’ financing is always the hardest part. And banks aren’t getting less picky about the loans they fund, but are getting more picky. New regulatory compliance and stress testing are tightening the purse strings at the big and small banks alike. For those with new investment property purchases this year, or for those with a maturity date fast approaching on a current loan, now’s surely the time to start considering all forms of financing.
Most real estate investors are not well versed in the various forms of financing available for investment properties, outside of traditional bank financing. Bridge loan lenders, also called commercial hard money lenders, are another form of financing for investment property purchases. These private money loans are non-bank loans, which means they are financed by non-bank sources of financing.
The typical timeframe for a private money lender to fund a loan is between 1 day to 30 days. Each bridge loan lender has unique requirements for approving a loan, but there are a few basic items that will help you close a bridge loan quickly, and of course it will be light speed ahead of any bank loan:
- Use a Dedicated Private Money Broker – A dedicated private money broker, who works with a variety of bridge lenders, is always your best shot at getting your financing closed quickly. In most cases, you won’t get a better deal if you go directly to the private lender yourself anyway. Use a good hard money broker, not your average mortgage broker. A good private money broker is worth their weight in gold.
- Get a preliminary title report pulled and have it ready. You can use a title company that you’ve worked with in the past to save time and money.
- Provide a purchase contract to the lender if it’s a purchase – If it’s a refinance loan, get a payoff statement from the current lender.
- Buying a property as an LLC or Corporation? Get all of your business entity documents together including your Articles of Incorporation, Operating agreement, etc. Some lenders will require more business-related documents, so check with your particular lender.
- Get Proof of Insurance – Get with your insurance agent and be ready to provide proof of insurance. The lender will want to be listed as the “interested insured” on the policy so find out what name should be listed on the policy.
Banks will continue to be picky about what loans they do this year and next year. Be prepared with multiple alternatives for financing in 2014. Don’t catch yourself in a last minute situation with no alternatives. A bridge loan is a no-hassle, low documentation loan, that may replace your next bank loan.