This is the first of 6 emails outlining commonmistakes or misconceptions too many investorshave about hard money loans. I'm sure you'llfind them helpful for building your business!
Mistake #1: Not Using Hard Money LendersWhen I first started my real estate investingbusiness years ago, I was not at all enthusiasticabout borrowing money from hard money lenders.Let's face it, at first blush, the rates seem prettyhigh compared to banks, and aren't people whohave less than perfect credit the only onesthat get these types of loans? Well, it took me a lot of time trying to findother sources & the painful experienceof working with banks before I came to the realization that ALL good investors come toquickly in their business:
IT'S NOT THE COST OF THE MONEY,ITS THE ACCESS TO THE MONEY THATMATTERS!Nothing new there, but it's the truth. Too manypeople spend so much time trying to find the absolutecheapest source of money to fund their deals. If youquick-turn real estate, it doesn't take you long to realizethat there is actually not a very big cost differencein using conventional funds vs. asset backed loans (iehard money loans).
Not to mention the fact that manyof the rehab deals you'll buy won't meet the criteriafor conventional lending simply due to the conditionof the property.So the question is, what do you want to spend yourtime doing, looking for funding or looking for dealsthat are going to put big fat checks in your pocket??Asset backed loans are a great way to have aconsistent source of funds to grow your businessquickly, and help you focus on your most important