If you’re planning on flipping or investing in properties for profit, you will most likely need to repair and upgrade them to make them more accessible and desirable. Many recommend obtaining a rehab loan or FHA 203(k) loan to fund the project. These loans allow investors to finance the purchase or renovation of a property through one single payment.
An FHA 203(k) loan, or a rehab loan, could be your ticket to reaching home equity wealth. This loan allows you to buy or refinance a home that needs work and add the renovation costs to the mortgage. Many homeowners use this type of loan because it can be an affordable option to pay for a home improvement and expand home-buying options. Here are the rehab loan rules you should know before applying for an FHA 203(k) loan.
You’re ready to close on your investment! When you’re buying a house or piece of property, you may need to provide some documentation to your loan broker and to the seller. For example, you might have provided a preapproval letter, which shows the seller that your lender will give you a loan for a certain amount toward your purchase. But how does a proof of funds (POF) letter differ? We’re here to break down everything you need to know about proof of funds letters and ensure you can provide the correct information.
Investors are always looking for the next best investments. Trust deed investing is one of the best ways to build a passive income. Passive income involves minimum oversight, and it will continue to add revenue streams.
Whether you’re paying back a hefty mortgage, paying off a credit card, or making car loan payments every month, your goal is to quickly pay off your private money loans. If you’re late on payments or paying the minimum amount towards your loan, you’re looking at a negative credit report and many extra dollars of interest payments throughout the life of your loan.
Real estate investors purchase, manage, and sell or rent out a property for a return profit. This process might include renovating, repairing, and upgrading the property to sell.
Every successful business transaction is built upon communication and a healthy business relationship. There are many ways to build professional relationships, each tailoring to that specific individual.
It was very early in the pandemic when fears of economic recession started to circulate. Though at this time we were only just beginning to see the potential impact of COVID-19 for what it was, it was rapidly becoming clear that lockdowns and shuttered industries could lead to drastic financial consequences. This led to a lot of questions about recession, some of which revolved around the housing market.
Earlier this month, our VP Jeff LaMotte was interviewed by Real Estate Bees along with peers on the affect this pandemic has had on the private money market. This survey included information collected from over 2,000 active hard money lenders and Jeff was asked some specific questions as an industry expert. During the COVID-19 crisis, many non-QM and hard money lenders closed up shop due to the future’s uncertainties with this virus, but businesses like Val-Chris Investments remained open, continuing to serve the needs of our private money clients!
A large part of the Private Money Trust Deed investment market had been gobbled up by the Institutional Non-QM (Qualified Mortgages) Mortgage Companies backed by Wall Street Investment Companies seeking higher yielding investment strategies in the last few years. Trust Deed Investors were being squeezed out of the market and replaced by large aggregators. This provided fewer opportunities and competition was fierce for these loans.