Major Issue for Beginner Real Estate Investors

With a quick Google search, a novice real estate investor can find an overwhelming amount of information on how to become successful. There are promises of quick wealth, of fail proof methods, and books and seminars full of information on how to achieve your investing dreams. Instead of increasing the noise, telling you the exact steps to take to conquer the real estate investment world, we are going to share some mistakes that beginners make. By avoiding these common pitfalls, you will have a better chance at succeeding in the beginning, which could lead to long-term investment success.

Not Enough Research and Planning

The keys to success in any field are research, planning, and goal setting. Real estate investing is no different. Before you jump in, you need to understand the local market. Talk to local experts, property managers, and real estate agents about trends in the area, property values, market rates, and residents. And don’t forget the legwork – there is no substitute for seeing and walking properties in person, driving the neighborhood, and understanding the nuances of the things that impact value. You can never know too much, and knowledge is power. Going into an investment decision empowered with information will lead to stronger outcomes.

How to Source and Find Real Estate Deals Using Hard Money

A hard money loan is a short-term loan backed by a hard asset, generally real estate, and is typically issued by a private company or investor. Hard money loans are ideal for house flips, real estate investors with credit issues, or in a situation where a buyer needs to move quickly on an opportunity, such as a short sale or foreclosure. So where should you search for real estate deals for which hard money is appropriate?

The Internet

Gone are the days spent searching through the newspaper’s classified section for listings. There are now websites that can quickly filter through a large portion of available real estate by geographical location, price, type of sale, and more. Realtor.com, Zillow.com, ZipRealty.com, and even Craigslist are websites that can narrow your search more quickly than in recent years. Some research and work is still required in order to sift through the available options, but real estate websites are full of helpful information.

Online forums for individuals in real estate are another great source of information, no matter what questions or concerns you may have. There are local forums to participate in, as well as national Facebook and LinkedIn groups to join.

Real Estate Investment Groups

Networking with professionals in the real estate investment business is one of the best decisions you can make for yourself. Networking groups have grown in popularity over the last few years and are full of both new and experienced investors that provide resources, tips, and support. Meetings may have speakers with helpful knowledge to pass on to you, other investors to partner with, or lenders ready to provide a loan for your deal. Some of these groups may also have an additional online presence, as was mentioned in the previous section.

Befriend a Real Estate Agent

Real Estate agents in your area will have insider information on the potential sales in your area. Partnering with an agent who will share their wealth of knowledge is a smart step in your investment process. Real estate agents have access to a database run by brokers called the Multiple Listing Service, or MLS. There is a monthly fee to be allowed access to the MLS and it is only available to licensed realtors. The database has more information on each listing than you will find on one of the websites listed above, and knowing more about a possible investment is always an advantage. Make sure you are prepared to move quickly (i.e., pre-qualified with a hard money lender) if an Agent brings you a good deal – they will keep you informed if they know you are a real buyer and stop calling if you aren’t properly prepared to close a deal that makes sense.

Finding quality real estate deals takes time and persistence, but if you are ready and prepared to put in the work, you will get the results. Research, smart relationships, and hard work will set you up for long-term success in the real estate investment world.

Private Money Lender – Reliable Resource For Lending Quick Money

Private Money Lender is a private organization that established the relationship within the real estate market.  For the growth of new Investor, Private Lender plays a vital role. The Commercial Real Estate investment is not completed without money. So, investors always look for the funding deals by the private money lender in Houston TX. If you are looking for quick Loan approval services, then Texas private money Lender is a reliable source. The lender always provides real estate loans truly designed to fit the investor needs.

HASSLE FREE LOANS THROUGH PRIVATE MONEY LENDERS

Now, it becomes too easy to seek financial help even with bad credit scores through Private money lenders. There are numerous lenders available to offer money without hassle. It is advisable to go online to find the best private money lenders. Always go for a professional lender to get the best loan service. It is important to gather the complete information about the lender online to get out of financial trouble.

At Bay Mountain Capital, best financial solutions are available in the housing industry. We cover major regions: Dallas, San Antonio, Houston, Corpus Christi and Fort Worth. We strive hard to offer you the hard money in an efficient manner. We focus on single and multi-family investments in Texas. Our staff is experienced and friendly to offer complete assistance related to loans with a stress-free approach. Contact us at www.baymountaincapital.com and enjoy instant finance within very less time.

Hard Money Basics

Hard money loans are expensive, designed to be short-term loans, and have loan amounts that are typically higher than conventional loans.

Loan Amount Calculation

Purchase price = $50,000

Rehab budget = $20,000

Total capital = $70,000

ARV = $100,000

70% of ARV = $70,000

Sources of Hard Money

• Specialized Hard Money Lenders
• Individuals or group of individuals
• Mortgage pool or investment fund
• Self-directed IRA
• Understanding the role of the “Loan Broker”

Right Situations for Using Hard Money

• “Distressed” properties
• When speed counts
• When used as a “bridge”
• For taking a “cash-out”