Find some good mentor for real estate business learning!

One day my younger brother, Brian, came to me with a plan to start a real estate investment business. He was getting crazy over the idea and planned out to visit the different residential areas, in order to make a research. He was holding a newspaper full of property ads. I looked at him and held his hand to ask for sitting in front of me. What’s wrong! Was his reaction to all this.  I kept on holding his hand and tried to look at the idea with my perception.

Go out and find some real good mentor for all this was my statement to whole of his idea. Owing to his surprise I asked him some questions about the hard money loans Virginia journal. He could not tell me some of the basic information about the whole systems of transactions and the kind of legal hurdles, which usually occur in such business. I advised him to go and find a very successful real estate investor of area. He agreed with the idea and searched on phone for some nice business tactics.  Nobody was willing to tell him slightest details without favor.

We planned an idea to ask a great successful real estate business person in this regard, to teach Brian for free. He was generous enough to accept the offer and told few things about hard money loans Virginia rules.  Later, we both planned to offer him another idea of sharing the 50% of the business, which we were supposed to get out of our own resources. He had to do nothing but to teach and train him in all aspects of real estate business. It was an idea which could motivate anyone and he agreed on it too. He asked my brother to learn all of the relevant details of hard money loans of Virginia, as he had already planned to work in the same state.

The idea was really very beneficial and my brother was able to learn a great deal of real estate business without making a mess of things. The training by an experienced person has only taken him to the ladder of success in real estate business, at a much faster pace as compared to the self learning mode.

Be Aware of Hard Money Lending Pitfalls!!!

A few years back, I have some friends of mine who were out trying to find a loan and one of things they did is they made contact with some guys. One of my friends selected one of them who made some promises that he will provide funding for him. It was, you know, one of the Hard Money Lenders that wouldn’t have to report to my friend’s credit bureaus on payments as long as he pays them off. He made some false claims that my friend will be able to get 100% financing and everything else. It looked so good that my friend decided Hey I am going to move forward with this Loan.

After deciding for this loan he moved forward with that lender for processing. They actually got all the information from my friend by setting him for a bunch of paper work. He wanted some Tax Returns and Bank Statements and said we will give you some bank statements as well. So my friend worked through all the documentation that has been requested while thinking this is a lot of work to get done for this loan. They thought hey if they can get us what we are looking forward, now they feel.

So finally they came down to the day of closing. When they showed up at the closing table, they found out that everything full of promise wasn’t actually what was delivered. First thing he found in closing documents is out that his loan WASN’T a Hard Money Loan. He further found out that it was actually a Portfolio Loan and it means his loan was going to be packaged and sold out. The lender actually approved a traditional loan for him which as you know is going to affect his credit score. If he close on a traditional loan and pay them off in a couple of months, it was going to have a bearing on his credit scores and a few other similar things.

They also did a traditional loan and closing out several times. It looks really bad on the lenders and lenders don’t want to loan to you ever again and it has effects on credit score. So my friend showed up the closing table and he was very upset and he chose not to close on the loan and that’s when he became my client as well because he want to choose Hard Money Loans and we actually were able to provide the financing at that time and he was able to close on loan. See! There was 100% financing. It was not at all going to affect his credit scores as long as he paid us off so we moved forward.

So, I think moral of story is, first of all hard money lenders are not graded equal just like not all hard money loans can be graded equally. Secondly, I think it is important to realize that several times we hear stories about people going to the closing table expecting to close on a loan and buyer never makes and the lender that they are consulting for hard money loans is seem impossible to be found and never to be called nor they reply back on any of your phone calls. So, I think it is really important that you, as a real estate investor, are working with a hard money lender that has a good reputation; a physical website presence and a physical office presence just like Hard money lenders Arizona. If this does not happen actually then you may have a problem. We have been discussed about hard money lenders and getting loans against real estate and some of the pitfalls and making sure that loan you are getting is actually a loan that you want. Happy Investing!