The economy has taken a nosedive when it comes to real estate. Those who don’t understand that you need to be able to roll with the gears will be overwhelmed. Of course, with every change comes great opportunity. Right now, the savvy investor targeting short sales, reo, wholesale, and rate-based investments is sure to reap some SERIOUS REWARDS before this real estate market changes.
However, the trick to doing this is to have the cash available to make deals right away. Forget hard money loans as they are nothing more than glorified traditional loans with a fancy name. Sure, pure hard money loans used to be when you borrowed a certain amount, no questions asked, and paid the money back at a higher interest rate. Now, you still pay the higher interest rate, but unfortunately, you have to jump through a lot of the same hoops that home loans require AND you have to wait for a closing, etc. This means too much time and REAL OFFERS will be lost. Don’t get me wrong, there are probably still some mavericks out there that function like they did in the past, it’s just a matter of finding the honest ones that REALLY exist.
There is also private money. This is similar to old fashioned hard money and can work IF you get the right person and the right setting. Trying to get someone to get out of her retirement account or hand over money just because she has it is NOT as easy as it sounds. Again, it can happen, but how much time are you willing to spend locating the right person, explaining how it will all work, getting the proper paperwork (legally), and then HOPING that person isn’t harassing you for updates or wanting to be involved? in all the problems that you have? Too much trouble for me.
What I do and now recommend and do for others is get unsecured business lines of credit. Yes, you may have heard this as the final frontier lately, and it’s great, but be careful here too. Most people who are set up correctly (and herein lies the hard part) can easily get lines of cash that are 100% YOURS TO DO WHAT YOU WANT. This seems to be the best way to capture the market as it is now. Once again, though, I want to warn you to be careful. There are many so-called professionals out there trying to get money for people with no idea how to go about it. Here’s a method that requires experience and connections… It’s not just about calling the bank and saying I have good credit and want to invest. If things are done incorrectly, not only can you be denied the line of credit, but your credit score will suffer, lenders could block your business for a year, and in some circumstances you could have a red flag of credit. for life.
Unsecured business lines of credit are, in fact, one of the best avenues to capture and control in today’s real estate market, just make sure you get a competent attorney before trying to get them.