As a real estate investor hard money loans can help you become very successful and wealthy because you can leverage your opportunities with Millions of dollars of private investor financing to seize investment opportunities that may not have been previously available to you. The key to successful investing, whether it is real estate or anything is to be prepared to take advantage of your opportunities. That is the purpose of these private bridge loans, provide short term financing to real estate investors. On type of Hard Money Loan is Transactional Financing.

Transaction Financing Defined.

Transactional Financing is the shortest term hard money loan. This is a bridge loan for one day. This loan is made specifically for investors who were doing flips and can no longer do double closings. Simultaneous closings are no longer acceptable and transactional funding makes simultaneous closings possible. The private bridge funding investor provides funds for one day. The funds are necessary for the real estate investor to take actual ownership of the property by financing it and immediately selling the property to someone who will pay cash or have their financing in place.

How to Use Transactional Financing.

As a real estate investor you want to identify properties and then identify a buyer to sell the property too before you take ownership. The properties you identify are generally distressed properties below market value tied up until you can find a buyer to take it off of your hands. This is what would separate you from most other investors, because you must begin to develop a number of ready buyers before you acquire the properties. These buyers need to have a source of funding already in place to facilitate a quick turn for you and them. In essence you could be a super investor providing below market deals that you will own and take a profit as part of the simultaneous closing.

Hard Money Loans for Transactional Financing.

In short transactional financing is short term funding from private investors that will facilitate simultaneous closings for your deals. To you the real estate investor, you pay lower fees and have a lower risk because you do not get stuck with any deals that will not close. You make a quick profit just by immediately flipping properties. I know flipping properties and double closings are dirty words in today’s market, but transactional financing helps you legally close these loans and make a handsome profit doing so.

All Dominion Mortgage

As a hard money lender All Dominion Mortgage has private investors who are anxious to do transactional financing deals. If you have projects or scenarios to discuss email us at louisj@alldominionmortgage.com or leave a comment below and we will address contact you immediately.

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During these economic times hard money loans have flourished. All Dominion Mortgage has been successful in helping investors meet their real estate investment goals because we know how investors can make money in commercial and residential investment real estate using hard money or bridge loans. While sub prime lending has all but gone away hard money loans have gathered more steam. The reason is that banks and other financial institutions the offer conventional financing have suffered record losses and many of them have gone out of business. This is primarily due to the fact that they were lending at or near 100% value of the property. When there is no equity in a property there are limited options during a down turn in value and ultimately banks and people lose. The more that banks and investors in the financial markets loss, the tighter financing became. This tight financing reduces the profits for lending institutions because they make money originating loans which is not happening now. This then leads to more tightening and ultimately the credit crunch.

Hard Money Loans.

The private investors that lend these equity loans work on different criteria. First, these loans are short term in nature. The commercial and residential real estate investors who use bridge loans to finance the acquisition and rehab of their properties generally go into the loan with an exit strategy. With most bridge loans being only six months to three years in length the borrowers are prepared to refinance or sell the properties moving them from the books of the hard money lenders. Secondly, the key to bridge loan lending is the after rehab value. If the lenders are only lending from 50% to 70% of the after rehab value then if there is a problem there is plenty of room for a quick sale to other real estate investors and the lenders do not lose money. At these equity points even the real estate investor is protected because they have options they would not have if they were doing a high loan to value loan.

Credit Crunch and Hard Money Loans.

So whether you are financing commercial real estate investments or residential real estate investments the low or no money down bridge loans for investors are a viable option for you. Those deals that may have been financed through conventional lenders are being turned away because of limit funds and tighter credit policies, the hard money lenders are thriving. Many people believe these equity loans are only for people who are not of the highest quality, but that is furthest from the truth, especially during tight credit times. The bridge loans are based on the equity of the properties and the ability of the borrower to complete their project within a reasonable budget and stated time. When those keys are in place, regardless of credit, the properties become viable investments for hard money lenders.

For all of your real estate investment financing needs contact All Dominion Mortgage and Financial Services today. Email us at louisj@alldominionmortgage.com or leave a comment below.

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You have decided to be a real estate investor or you are already a real estate investor and you need financing for your next project. In this era of tighter credit it seems that no one wants to lend money to residential real estate investors who do not have a large down payment and perfect credit. So how do we take advantage of a market full of great real estate investment opportunities? The answer is through a residential hard money loan from All Dominion Mortgage. These real estate financing programs would allow you to potentially invest in residential real estate with no money down and without having perfect credit.

What are the Qualifications for a Residential Real Estate Investment Mortgage?

Standard conventional residential real estate financing qualifications require 30% or more for a down payment, 6 months or more for liquid cash reserves, a very high credit score and the property must be in acceptable condition prior to funding a loan. Another factor is the market value of the property is the lower of the purchase price or the appraised value. Therefore as a residential real estate investor you must have lots of cash for down payment, rehab and substantial reserves before your loan is considered. Your income must also be high enough to cover the debt service of the mortgage because even if it is able to be rented immediately the lenders will only accept a small portion of the rental income if any at all on a conventional residential real estate mortgage. But with all these negatives a conventional residential real estate mortgage is still the best financing because they offer the lowest rates for residential real estate. So if you want to hold the property for long term cash flow it is important to position yourself to qualify for this financing.

What are the Qualifications for A Residential Hard Money Loan?

To make money now and take advantages of opportunities investing in residential real estate quite often not only is a hard money loan the best option even if you could qualify for a conventional real estate investment mortgage. A residential hard money loan from All Dominion Mortgage may be the only option. This is not a bad thing. If you can finance an investment property for little or no money down not based on your credit, cash reserves or even ability to service the debt their could be a great financial reward in doing so. Not only will you finance the acquisition of the property, but also the rehabilitation of the property. So how do you qualify, someone asked. The major qualification is the After Rehab value of the property. Many programs have a various guidelines but they most important factor is the after rehab value of the property. If the after rehab value is 50% to 70% (depending on other factors) you may qualify for a residential hard money loan from All Dominion Mortgage. These programs are strictly for real estate investors with no owner occupied properties accepted.

Close Your Deal Today.

So if you have an opportunity to purchase and or rehabilitate a residential investment property and you want no money down financing options contact All Dominion Mortgage and Financial Services today.

louisj@alldominionmortgage.com

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